Mike Andes and a co-host explain why business owners with scarcity mindsets often target the wrong customers. If you drive a $4,000 car and skip the french fries, you'll try to sell to people just like you. But home-service businesses thrive when they target customers with disposable income who want to buy now, not haggle over quotes.
Hate money, dude. I hate spending money. The car I drive, dude, $4,000 cash. We have no debt in the company. No debt anywhere. It's the best.
Yeah, like how you were raised has a huge impact on how you handle money, how you treat your employees, how you handle customers, how you think about growth of the business, investing in the business.
I refuse for us to buy french fries because the margin on french fries are 90%. I refuse to buy them.
He is selling to the version of him that has been hurt, which is lack of trust. I need to see somebody. I wanna have a buy now button. Please don't take me to a quote. Oh man, I want to buy it right now. And it is, I'm predisposed to not buy things online or not buy things at all.
If I want to buy shoes, I'm like going online, I'm going to buy shoes. Or if I wait, I'm like, oh, that's actually too expensive. Maybe I shouldn't buy the shoes.
No, I don't shop. You don't shop. He's concerned about how he would want to buy. He's not the target customer. This is the biggest thing for home service business owners that have been raised in a place of scarcity or not with a lot of wealth is that we are not selling to a version of ourselves. Here's the interesting though. She spends money. Yeah, she likes virtual. You don't spend money and you like in person. What type of customer do I want to sell to? The person who doesn't want to spend money or the person that wants to spend money? You are not the target audience. You're selling it to someone who has less time on earth and way more money than you, and they're going to see their time and they're going to see the value of your service very differently.
So here's the deal. Hailey is responsible for this because she's going to sell to herself.
You have a hard time selling over the phone because you would never buy it over the phone.
You wouldn't even buy lights because you don't buy stinking fries and Coke due to the 90% margin.
