Take a look at the above: Both product lines are within the Clorox family of products – one is branded Clorox and the other is branded Green Works. Although the image of Green Works does not show it, Green Works also offers disinfectant wipes and detergent. Essentially, the Green Works line has the same product types as the Clorox line. This is an example of both price discrimination and line segmentation. Below I will walk through both price discrimination and line segmentation in action so that you can learn and hopefully develop creative ways to utilize the same strategies in your small business marketing strategy.
So you have a product that you sell locally, for now. Whether it is a local cupcake business, bread producer, toy manufacturer, etc. this will apply to you because your goal is success and the more success, the better…right?
Growing your business requires incremental dollar sales month over month, year over year. Holding everything constant (product, price, distribution, placement, etc.) there is no reason to believe that the customers that you currently sell to or the shop that you currently sell at will produce more sales one year over the next. Therefore, the only way to grow when holding everything constant is to increase the number of stores that you are selling to.
A few weeks ago, I wrote about 3 Keys for a Service-Driven Small Business. These 3 keys are most important before and during a job. However, today I want to expand upon how to succeed as a service-driven small business by discussing one of the most important thing to do after the job. Similar to sales or selling, the job is not done and the relationship is not locked-in once contact information is exchanged. Likewise, your job as a service small business company is not complete once the job is done. You must continue to follow-up after the job multiple times to check that everything is still good, everything has gone as planned, etc.
Here me out for a second: quality assurance is one of the greatest challenges of small businesses. I know that some of you might not agree with this statement because small business owners take pride and ownership in their business and are producing their products/services in a much smaller quantity than any large business would therefore, you assume that lower volume equals higher quantity. However, my argument is that this is not the case. Although lower volume should equal higher quality, the issue that small businesses have is a limitation of resources, which impacts quality.