money matters part 3

images81NP3J5GMONEY MINDSET III

Today, we would conclude on our discussion on the mindsets to be adopted in order to make money.

1)      You have to understand your customer psychology. You have to be in the mind of your customer. Before you can do that, you have to understand the law of demand and supply. What is demand? Demand has to do with being willing and being able. So it’s not just willingness to buy, there has to be an ability to buy. So don’t spend your time with customers that are just willing to buy; mostly your friends. They are just willing to buy, but, many a times the spirit is willing but the flesh is weak. You have to understand the perception of your customer. The ability of the customer should determine your pricing. If your customer can pay #10 from your analysis, it’s absurd to charge him #5 because you want to increase turnover.  Do you remember the definition of good and faithful servant? He was good and faithful because he made more money. You have to learn how to do your pricing when you are in business to make money. There are customers that some products are too cheap for, some are perfect prices and some are expensive. You have to travel into their minds; they pay for the time you took to travel into their minds.

2)      untitled_Focus on the mass market. A lot of times we spend unnecessary time trying to catch the upper class market. The reasons I would tell you not to go for that class of market is that:

  1. a) It is expensive to reach them
  2. b) Their demand for excellence is crazy
  3. c) They have options – local and international

The middle class are the least catered for in Nigeria. Thuntitled__ey either stretch to get what is available to the upper class or condescend to the lower class. With a little more capital, you can reach this class. However, there is another set of people called the mass market; they are the people that can trade excellence for affordability. Why it pays you to focus on the mass market is this – If you need a 100 and you throw your net out for mass market to 100 people, everyone contributes a 1 for you to make a 100. Right? But with the other market, you want 5 people to give you a 20; it takes more to get 5 people to give you 20? Moreover you don’t get their loyalty. If one of them decides to leave because of the way you greeted him, that means that you are building your mark now over 80, 20 is gone. Hence you need to focus on the mass market. They will not demand too much from you. I am not in any way against excellence. In fact, it is one of my personal core values. However, for you to start with what you have where you are, it’s good to take excellence as a journey and not a destination; a process and not a product. Someone is satisfied with your level of excellence per time.

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