Efficiency Secrets For Success-Driven Entrepreneurs

The complimentary »5 Steps To Clarity: Efficiency Secrets That Will Skyrocket Your Results Every Single Time!« teleseminar series is over, but I’d like to share some of the main gems with you in a quick recap.

Remember, you can still register to download the five recordings, but hurry up, because they will be available only until April 30, midnight EST!

So, here’s a »get-your-feet-wet« version of some of the highlights from the series:

• There are several distinct definitions of efficiency. For instance, a production process is said to be productively efficient if it’s not possible to produce the same amount of output with a lower-cost combination of resources, or, produce more with with the same combination of resources. That means that you’re efficient when you put your resources, time, money and energy to their best possible use – that’s when you maximize your utility or satisfaction.

• The three basic components of efficient decision making are: benefits, costs, and risks – assess it in the right, detailed way, taking into account all the subcategories of these three elements, and you’ll know exactly what decision is the most efficient for you.

• Analyze the demand for your products and services by using surveys, observing the questions your audience is asking on the forums, explore the keyword search statistics, and test the hunger of your market by offering them a variety of packages at different price points. It’s crucial to learn how price elastic the demand for your offerings is. If it’s very elastic, you don’t have much market power, and can quickly lose potential clients and customers if you raise your prices. If it’s very inelastic, your tribe loves you so much, and you have been able to position yourself so effectively, they even an increase of your fees won’t make them turn elsewhere.

• The problem of asymmetric information about the quality of your offering (also called »the lemons problem« in microeconomics) between you and your prospects can be solved by building a remarkable, trustworthy reputation, relying on standardization, or market signaling, a process by which sellers send signals to buyers conveying information about product quality. Quick tip: if you want to signal high quality, offer something that a someone with a low quality product or service couldn’t possibly offer, such as an unlimited 100% happiness guarantee, for example.

• The three behavioral elements of consumers you should always consider that: we’re attached to patterns and habits (resisting change, even subconsciously), we often act out of fairness (even if it’s not economically »sound«), and we follow the law of small numbers (overestimating the probability that certain events will occur, like winning a lottery).

• The best way to incentivize people to take the action you’d like them to take is to positively impact their »efficiency formula« – they will evaluate their benefits, costs, and risks (we all do that, even inadvertently!), and if you make sure the benefits will prevail over costs and risks, you’ve just created a very powerful incentive…

• Market power is the ability of a seller (you) to affect the price of a good. If your offerings are unique (and you position them as such through proper branding, signature systems, relationship building etc.), they can’t be substituted, so if someone wants exactly what you provide, they can’t get it anywhere else, which gives you power to set the price independently from the market price for similar products and services. You can also price discriminate – charge different prices to different individuals or groups, or at different points in time, or for different amounts.

• The top three factors to consider when making pricing decisions: demand, value, and YOU (you need to be excited about the income you’ll generate!).

• Your prospect’s preference toward risk influences the way you need to adapt your offering if you want them to say YES to you. So, know that people can be risk-averse, risk-loving or risk-neutral, and this makes all the difference when it comes to decision making. Risk-averse prospects seek more reassurance, while risk-loving ones don’t care about that as much, but highly appreciate the »surprise« factor…

• With some goods, a person’s demand is affected by purchase decisions of other people, which is referred to as a »network externality«. Two situations when this happens are »the bandwagon effect« (when someone wants a good because others have it – it’s popular and trendy) and »the snob effect« (when someone want a good because it’s exclusive and no or very little people have it), the first generating a relatively elastic, the second a relatively inelastic demand. Remember what that means in terms of pricing?

Of course, there’s a lot more in the recordings of the teleseminar series, so if any of these sound interesting to you, go ahead and sign up here.

I’d love to read your comments, and reply to any questions you might have after listeninf to the calls, so please post your thoughts, and get the conversation going, OK?

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