Many people these days are talking about ‘abundance’ versus ‘lack’. What does ‘abundance’ mean for a business?
There isn’t space here to go into a complete treatise, so this article is limited to the major topics, though the principles hold true for any level of detail.
First let’s quickly explore what it means for the world at large. The example most often used is the apple tree – the tree does not charge for its fruit, it gives apples away to anyone or anything that wants them. The ripe fruit are obvious to any passer-by and when ripe they are easy to take, and all that is asked in return is that the seeds from the fruit are deposited in a suitable place that might grow another apple tree. The tree has ‘abundant’ fruit, more than anyone could consume in a single day, or even (if the trees in my backyard when I was a child are any guide) a sizable group could eat in a single day.
How does that help a business owner or manager? There are a number of ‘lessons’ there.
The first is that the unique offering of the tree is immediately recognisable. That equates to the UVP of the business being obvious. A single glance and the UVP leaps out at the potential customer. Does your business name and tagline tell your target market what you do?
The second lesson is that the tree delivers massive value. Take as many apples as you wish, and come back tomorrow and do the same. All the recipient knows is that they are about to enjoy some fresh, ripe, juicy apples. Do you deliver value to your customers, and are they aware that they are receiving it?
The cost to produce the apples is small, and the perceived value to the consumer is high. The tree takes dirt, water and air that lies at hand and creates tasty apples. Another lesson for a successful business is to produce high perceived value for small actual cost.
The payment for the apple is only to perhaps leave the seeds inside the apple in a place that will grow another apple tree. A very small payment for the substantial benefit of a sweet meal. Do your customers value your product higher than their cost?
Not everyone will agree with these comparisons, and some will simply argue that your price should be as high as the market will stand. If you believe that that will develop a long term relationship with your customer then I guess you are welcome to do that.
This article is a continuation of the theme developed in the “Know, Like, Trust” article of a few weeks ago. A strong, long term business is built by developing strong relationships with your customers, not by financially abusing them with high prices and low value.
Do you agree or disagree? Leave your comments and see what everyone else thinks.