Offer the product to a market so eager to buy it that demand exceeds supply. This is being oversubscribed (super requested), and it is the condition that every entrepreneur aspires to achieve.
At the base of everything must be the desire to offer an extraordinary experience to its customers, something that is really worth the effort and that you are willing to talk to others to the point of becoming “ambassadors” of the product itself.
Once the potential customer, the reference market, the development strategy have been identified, the most important moment arrives, that of diffusion.
What it means to be Oversubscribed
Oversubscribed means “super-requested”, that is, being in excess of demand, and it is the condition that all entrepreneurs aspire to achieve.
The first rule to do this is to be sure that what is offered is really worth it. You must love what you do and take care of your customers.
Principle 1: supply and demand determine the price and people need something difficult to obtain
The price of the wider market should not be considered, but the price set by a small group of people. For a small number of people your value is higher than you think.
To become a top company you only need those that are necessary to raise your prices. If two people want your time, but only one can have it, the value of your time goes up. If you want to hire talent, you must also be oversubscribed for talent.
If you want an effective disclosure, you must be oversubscribed for those who want to tell your story. In short, you have to create the situation in which a certain number of people who want something cannot get it.
Business is defined in 3 ways:
- oversubscribed : demand exceeds supply;
- balanced : supply and demand are relatively equal;
- undersubscribed : supply exceeds demand.
Principle 2: exit the price competition by creating a “tribe” of aficionados
You have to untie your business from the reference market of the sector, to get out of the price competition. There are brands (and people, like Brad Pitt and George Clooney) that do not have a market price, but their own exclusive market.
To start doing this, you need to build your group of admirers, cultivate a “tribe” of people who are loyal to you, your products, your philosophy. Once this is done, gather your people and detach them from the generic market, get these people to participate in something special.
Jean Pierre De Villiers, “JP”, is one of London’s highest paid personal trainers. He is probably a stranger to you, in fact he has only 8 customers, who pay him up to £ 40,000 a year. Its services can be bought in six-month packages and paid in advance. JP only works with businessmen who are always on the go and earn at least £ 400,000 a year. In 2010 his rate was £ 45 an hour. Then he began defining his niche, wrote a book for his specific customers, spoke at business events and appeared in exclusive magazines. It’s important to be famous for a few, if those few are your customers.
What are the ingredients to become “famous” and build your own market?
- coherent and repetitive message . Reiterate what you do clearly. Give stability to your ideas;
- content . People read: write posts, produce videos, articles, books;
- commercial ecosystem . After they meet you, customers will want to be able to buy from you easily;
- continuity . You need an online identity that shows what you’ve done in recent years. When they discover you, people want to know what you’ve done before;
- collaboration . Be open to relationships and engage in partnerships that can be judged beneficial to all parties involved.
Principle 3: the four key elements to generate an imbalance in the market
The first key element is innovation. Create something new that the market has not yet seen and will want.
Producing innovation is not only creating the iPod, it can also simply be the way you combine your product with another service:
- product innovation : launching something totally new, like the characters of Star Wars;
- system innovation : a new way of doing things, like Facebook which is a new way to stay in touch and meet new friends;
- brand innovation : new packaging that makes something that already existed desirable.
The second is the relationship. You can innovate on the level of relationships by becoming more influential and capable of involving others, or you can work to become more known and raise your appeal.
Third , functionality: remember that everyone wants to save money, time and effort. The books you buy on Amazon are the same that we find in the bookstore, but they are easier to obtain, the set of features that achieves this advantage makes the difference between Amazon and other bookstores, and is the key element.
Fourth key element, the price. To reduce production costs, you can invest in goods that create an “access barrier” to competitors, for example owning the equipment that others are forced to rent from time to time, in general it is a question of perfecting the process production to eliminate inefficiencies.
Principle 4: Creating a favorable buying environment generates buyers
People buy because conditions are favorable. The behavior that leads to the purchase is conditioned by the environment. You don’t have to look for people one by one, but make them move all together.
The transparency, that is, the visibility, that you can have on social media is very effective: a post announcing an event with 60 seats at $ 500 each makes the event easily sold out if in the comments there are a hundred conversations that show the intention of as many people to buy a place.
Organizations that try to educate us on what to do are doomed to fail, those that make social change interesting and desirable will succeed. Ask people what they want, build the product the way they want it. Describe it in the context of what the customer wants, then add what he needs.
Principle 5: the advantages of making yourself different and memorable
Develop your philosophy, affirm it clearly and take care of those who agree with you and firmly share your idea.
What is your specific philosophy? What are the key points that identify it?
It’s okay to say no: the owners of Studio 54 in New York immediately decided that it was better to have the room empty rather than full of the wrong people. Studio 54 was the first place to send customers away because they had the “wrong” shoes.
Google has one million job requests per year for a few thousand jobs. Aspirants agree to undergo tests, games, questionnaires and assignments. 99% receive a “no”.
What are the reference standards in your sector? What are everyone else doing? Make yourself different and memorable, out of the ordinary, play with your rules. If everyone in your sector offers hourly prices, try offering a fixed price.
If everyone sells separate items, prepare a package. If the norm is an annual contract, offer a monthly service without clauses for those who do not renew.
Principle 6: people get stuck in front of “all or nothing”, better to propose to go up a “first step” than to raise a wall
Nothing goes on alone, things work if they are put into the system.