How to Carry Out Market Research for Business

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Hey folks, welcome to the Pricing Seven Day Challenge.
We're on day three, I hope you've so far started to see
a few mindset shifts in terms of what we've done
on days one and two, looking at goals,
looking at the three common pricing mistakes.
Today, we're just gonna be looking at market research
and how, and capacity research, and seeing how
your business and your products stand up in,
against your competition.
So I'm gonna tell a little story, there's gonna be
three parts to this, to day three in your workbook,
which you can see I've laid out here.
But I'm gonna tell you a story just to introduce it.
So I did a talk recently at a local university,
and they were talking about market research
in terms of getting very quantitative data,
which meant that they were just gathering numbers basically.
What they were lacking was the qualitative data,
and the really vital, the key ingredient,
which is where you add in a story to this.
So the first step in market research is to
test the marketplace.
So if you've got an idea for a product,
don't spend hours, weeks, months,
perfecting this product, just go out and pitch it
and see how well that idea lands.
So in the university talk, there were 70 students in there,
and the one guy I picked on
pitched his idea, and 50 people kept their hands up
and indicated that they were interested in that idea.
So that tells us that, yes, this is a good idea.
The second thing, then, is to test the pricing.
So we know how much our product or service costs to deliver,
or we should do,
and maybe you should have a look at some,
look at that as part of the exercise following this video.
But do we also know that it's gonna be profitable?
So what I did with the students was, I said,
okay I'm gonna do a Dutch auction, and we're gonna start low
and I'm gonna start increasing the prices,
and when the price increase is,
or price reaches a point where it's too expensive,
put your hand down.
So add 5 pounds, 10 pound, 20 pound,
we got to 50 pounds, and there were still 20 students
in the room with their hands left up.
So that tells us there are 20 students in there, out there,
willing to spend 50 pounds on this one particular product.
Where it got really interesting
is where we added in a story.
So what I mean by that is, so it's actually a
dentistry-related product.
And so I told the story, I said,
if, in the next 30 days, one of your teeth
is gonna fall out, but if you buy this product,
I can guarantee that your teeth aren't gonna fall out,
how much would you then be willing to pay?
Obviously, there was a much more,
there was a lot more detail to it than that.
And this time, I started off much higher.
So I started off at 500 pounds,
with the 50 people who had their hands up originally,
and one person put their hand down.
And she went like this, and she had a tooth missing,
so we kind of had a bit of a giggle about that, and
it's like, there's always one.
I got up to 2,000 pounds, and 10 people in the room
still had their hands up and said they would spend
2,000 pounds on this product
to stop one of their teeth falling out in the next 30 days.
So now, who do we market our, target our product at?
Do we target it at the 20 people who want to buy it
at 50 pounds without a story,
or do we have a compelling value proposition in there,
and sell it to the 10 people
who want to buy it at 2,000 pounds?
And the answer's obvious.
So what I want you to do in the worksheet
is just go through these three things.
So do a little bit of market research, put a poll out
on your Facebook group, or on a local networking group
or something like that, and just pitch it,
pitch your product to them, and just see whether people
think it's a good idea or not.
Second thing I want you to do is then
test the pricing side of it.
How much are people willing to pay for your product?
And we want to go high-end.
And then finally, tell a story.
Tell people what pain they're gonna go through
if they don't buy your product.
So it's that, heaven if you do, hell if you don't
sort of scenario.
Write your findings down on the worksheet,
pop it into the Fearless Business group
the Online Business Startup group, let's hold each other
accountable on this Seven Day Challenge.
And I'll see you again then, on day four.
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How to Carry Out Market Research for Business

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