Developing your own business is a process that requires knowledge, work, time and money. No new company starts at the royal level. It is sometimes said that new companies are in their infancy, developing and growing. Today, we will use the metaphor of princesses. We are writing this article half-jokingly, but the topic is extremely important and serious.
Companies in the early stages of operation with a price-based market entry strategy may look like Cinderella. No one expects them to have a perfect appearance – that is, in the business world, an impressive visual identity, a well-designed website, original social media accounts, and an impeccable presentation of services or portfolio. On the contrary, these types of companies must maintain consistency between the fact that their services are cheap and the fact that they cannot yet afford to create a consistent visual identity. Can you imagine Cinderella separating lentils from ashes while ready for the ball – in all her glory, with a dress and glass slippers?
A dress from Chanel and service prices
If a company is growing, it needs to improve the quality of its services, hire people, improve its administrative management, and develop operational processes and procedures. All of this costs money. Even more than a ball gown. That is why it is necessary to raise the prices of services, because the quality is now incomparably higher than it was at the outset. This is where a big problem arises for many companies that have chosen their pricing strategy unconsciously – often due to a lack of competence or a business partner who can advise them on how to prepare it properly. Companies, understanding that they cannot provide better quality at the current prices, begin to raise them. The problem is that there is no adequate communication with the customer and the market is unable to understand the reasons for the increases. Existing customers become discouraged because they cannot guess for themselves what value is behind the price change. Customers making enquiries online also do not know this and choose companies that can explain it differently than , using hackneyed slogans such as “high quality” or “comprehensive”. Every princess knows why a dress from Chanel or Dior costs more than one from a chain store – because Dior and Chanel were able to communicate this, and their image was consistent with their prices.
Success is not for small players
If a company does not care about its image, does not maintain standards, tries to dictate high prices, and clearly saves on its image, there is a dissonance and a consequent lack of credibility. That’s why the Cinderella fairy tale is just nonsense for young girls. They have to be princesses to meet the prince’s standards, and it’s not just about wealth, but about mindset. Without that, there will be no understanding or trust between them. It may sound trite and brutal, but life is not a fairy tale, and business has its own rules.
You can’t fool the public
There is a rule in sales – if you want to sell for a million, you have to look like a million. The difficulty is that it cannot be just for show, but must be accompanied by a true image of the company. However, the assumptions are the same everywhere – the stronger dictates the terms to the smaller. Don’t want to be the smaller one? Then rethink your strategy, e.g. enter a niche that gives you exclusivity and makes the small player an important one. A real princess is always an important player – she looks good, is recognisable and presents a high standard. Of course, we can try to be Cinderella and wait for a prince who will pay us royally for our services, but in business, we personally prefer to rely on methodology rather than luck.
What role does our agency play?
At our agency, we help companies show that they are important players and can aspire to be industry leaders. If you are already a princess or strongly believe that you have the potential to become one, we will help you choose the right outfit. Together, we will encourage your business candidates to invite you to dance on the biggest ballroom floor called the market.
