Lemonade Lesson #1 - What Do You Sell?

"The goal is to craft the product package so you will have clarity about what it is and what its value is. If you offer a service rather than a product, define your scope of work." excerpt from Lemonade Stand Selling

It is so very important that you know exactly what it is that you sell. Too often, small business owners want to be all things to all people. They fear that if they don't have a broad menu of products or services they will miss out on business.

Here's the catch - if you offer too many things you dilute your message. How do
people know what you excel at? How do they know what your core competency is? It's harder to be great at several things than it is to be great at one or a handful.

If you pick one thing that you do exceptionally well, you will be able to develop a
clear message that you, and others, can land on. This will make your sales effort much easier.

Now what if you offer a service? Understanding the scope of work will help you
stay profitable. If you have a vague idea of what the service is, you will have trouble holding the same understanding as your client. This can lead to conflict - conflict you don't want. When you are clear about the scope, you can discuss it clearly and concisely with your prospects and clients. You can detail it in a contract so there is no question about where the job begins and ends. Take the subjectivity out of it.

Does this make sense?

How can you apply it to your business?

What questions does this raise?

Stay tuned for Lemonade Lesson #2 - What is the Value?


Anonymous said...

What a great lesson!
I offer a service, yet treat it like a product, as I am trying to develope a 'Code Of Standards' in the painting industry. There are efficient, correct methods to this trade that can allow tradesmen (or tradeswomen) an opportunity to excell, and learn painting in a more formalized fashion, rather than the 'free for all' that currently dominates the industry.
I like that your blog ackowledges service orientated businesses, and emphasizes how important it is to have a 'it be known' approach to sales and marketing.

Diane said...

Thanks for the comment! It is so important for service providers to understand their scope of work. Too often they give too much for free and then wonder why they aren't making any money.

Good for you for creating a code of standards. You may just revolutionize the industry!