Don't Sell Your Product -: A Small Business Strategy


© Bert Markgraf

Before the advent of computers and the Internet you needed a lot of people to find out how to do things and to get things done. Then you needed more people to administer the first group. Finally you needed a large business volume to pay for all these people and you achieved it by hiring a lot of sales people. When you start out like this you benefit from "economies of scale" and huge corporations were very successful.

Today, in many sectors, you can find out how to do things from the Internet or you can use it to reach people who will help you. With computerized processes you no longer need a lot of people to produce things. Administration is computerized and you haven't got a lot of people anyway. This means that small business has an inherent competitive cost advantage until we get to selling. You still need a lot of people to sell your product. If you add large-scale advertising you're a small business trying to become a big business and you've lost your advantage.

To capitalize on your small business status, don't sell your product. Selling is a high-cost activity designed to reach a lot of people, who may or may not need your product, and to convince them to buy. If you want to maintain and take advantage of your small business status, this is not an activity that fits. Instead, you're going to perform a public service.

If you've done your homework, you're producing a high quality product which some people need. As a small business you can produce it more cheaply than a big corporation. All you have to do is let the people who need your product know that it's available and they'll call you. You're not selling, you're satisfying a need. You don't need blanket advertising; you need to figure out how to reach only those people who need your product and you'll be helping them solve a problem.

Now you're back to what a small business can do well. You're down to a few people who are very knowledgeable about your product dealing with small groups of people who need your product. That's efficient. It's low cost. It's small business.

For more on this topic try this two part article on targeted marketing.

Go To Page: 1


The copyright of the article Don't Sell Your Product -: A Small Business Strategy in Small Business is owned by . Permission to republish Don't Sell Your Product -: A Small Business Strategy in print or online must be granted by the author in writing.

Post this Article to facebook Add this Article to del.icio.us! Digg this Article furl this Article Add this Article to Reddit Add this Article to Technorati Add this Article to Newsvine Add this Article to Windows Live Add this Article to Yahoo Add this Article to StumbleUpon Add this Article to BlinkLists Add this Article to Spurl Add this Article to Google Add this Article to Ask Add this Article to Squidoo


Here's the follow-up discussion on this article: View all related messages

3.   May 8, 1997 4:53 PM
Hi Bert,

You have been very helpful. I have taken your reply to heart and am taking a very hard look at the way we present ourselves to our customers. Much appreciated!

Concerning our website ...


-- posted by Wayman_Hearn


2.   May 8, 1997 1:51 PM
Hi Wayman,

You're selling your product. Stop it. ;->

You actually fit the article perfectly - a small group (two) of knowledgeable people offering a high quality product. But you haven't found y ...


-- posted by Bert


1.   May 6, 1997 10:23 PM
Hello Bert,

Wayman here. Very interesting article. I can see your point about the cost disadvantages of blanket marketing for small businesses.

As I have written to you before, my wife and I ...


-- posted by Wayman_Hearn





For a complete listing of article comments, questions, and other discussions related to Bert Markgraf's Small Business topic, please visit the Discussions page.