This post is part of the 📖 Oversubscribed series.
Today, I am reading a section FOUR MARKET POSITIONS THAT GET OVERSUBSCRIBED from the PART 1 of the book Oversubscribed: How To Get People Lining Up To Do Business With You written by Author, Daniel Priestley.
Are you constantly chasing customers? Why does it seem like some businesses have their customers begging to purchase their goods or services?
Learn how to get your business oversubscribed in a crowded marketplace to make your business stand out and get people lining up to do business with you.
The Book Oversubscribed is the guide to transforming your business into one which customers fight over! This invaluable guide will teach you how to drive demand for your products or services far beyond supply and will dramatically increase the success of your business.
Yesterday, we started reading PRINCIPLE 3 FIRST MAKE YOUR MARKET THEN MAKE YOUR SALES and left in the middle of it.
PRINCIPLE 3: FIRST MAKE YOUR MARKET THEN MAKE YOUR SALES
FOUR MARKET POSITIONS THAT GET OVERSUBSCRIBED
The way to being oversubscribed is to achieve an imbalance in which more buyers than sellers in your market.
There are four drivers of market imbalances where you’ll often see more buyers than sellers:
Innovation – You offer something new and shiny that no one else offers. There’s only one seller (you) and a niche of new buyers who want it. There are, therefore, more buyers than sellers by virtue of the fact there’s only one supplier and more people who want it.
Relationships – You build such a powerful relationship with buyers that they ignore other sellers. There are more buyers than sellers because buyers aren’t interested in other sellers.
Convenience – You are answering the market’s needs with the most frictionless expression of what they want. This is about being in the right place, at the right time, with something that meets consumers’ unmet desires.
This creates more buyers than sellers because buyers are reluctant to invest time, money, and energy to find alternatives.
Price – This occurs when you’re able to create an imbalance based on price. You’ve invested in an asset that produces an efficiency others don’t have. Crucially, you’re still able to offer your products at a profitable price, but that price is lower than other suppliers can achieve.
The big brands dominate one of these four market imbalances and let other brands fight for the alternatives.
DRIVER NUMBER ONE – INNOVATION
The first way to create more buyers than sellers is to create something new that the market hasn’t seen before and they now want.
DRIVER NUMBER TWO – RELATIONSHIP
Owning the relationship with buyers in your market leads to a market imbalance. If people don’t shop around, they eventually cluster, and the business becomes oversubscribed.
DRIVER NUMBER THREE – CONVENIENCE
Market “friction” refers to the time, energy, effort and know‐how required to buy something.
If it’s difficult to buy something because it’s far away, poorly understood or time‐consuming, the market is slowing down due to friction.
If you can reduce that friction, you’ll attract many customers who will call it convenience.
When you find ways to simplify and speed up buying from you, it creates a market imbalance. People buy from you because it’s much easier than going elsewhere.
DRIVER NUMBER FOUR – PRICE
The final way to create more buyers than sellers is to bring down the cost of production so that you can offer something cheaper than everyone else but still make a profit.
Up to now, we read three principles
- ONLY OVERSUBSCRIBED BUSINESSES MAKE A PROFIT
- THE ONLY PEOPLE THAT MATTER ARE YOUR PEOPLE
- FIRST MAKE YOUR MARKET THEN MAKE YOUR SALES
That’s it for today. Tomorrow, we will know next principle PRINCIPLE #4 - PEOPLE BUY WHEN THE CONDITIONS ARE RIGHT section.
Author(s): Daniel Priestley
Part 6 of 32 in the 📖 Oversubscribed book series.