Some of the businesses that have suffered the most are the ones built on bringing people together and having person to person interactions.
On the other hand for the people that have created online businesses they can run from anywhere, it’s pretty much business as usual. They may even be seeing an increase in customers/clients as people look for something to turn to in these uncertain times.
And so now these people that used to run businesses based on people being together are having to re-think their plans.
Asking themselves questions like ‘How can I transform the in person experience to an online experience without a loss of value?’. That could be as a plan to totally move their business to the online world or to be a supplement to their usual income.
An example could be in person one on one coaching, moving to online one on one coaching or group coaching sessions.
A group cooking class moving a to live online cooking class that can also be purchased afterwards.
A baked goods store moving to click and collect or home delivery.
I think the current situation has made a lot of people realise that their are different (and in some cases better) ways of doing things.
I recently wrote a post called Does the customer determine value?
Here are some more thoughts related to value, price and the customer.
Think about an auction, the seller will often have a reserve price (the minimum amount they’re willing to sell the item for). Yet items often get sold for significantly higher because buyers are prepared to keep bidding if they want the item badly enough.
Even if an item could fetch around 20k, the seller can never start with that price, they have to allow the buyers to build up to it. Instead, the seller can only hope that people will pay that amount or at least above their minimum price.
I think it could be said that, although the seller sets the price it is in fact the customer that determines the value of the item.
I recently saw some things for sale and my first thought was that I wouldn’t buy them. In my opinion the items weren’t worth the price they were being sold for.
But people were buying the items.
Turns out that that even though I didn’t value the items at the price they were being sold for other people did, which got me thinking.
Who determines value?
If you’re selling something for £50 and nobody buys it, is it actually worth £50.
Or does value come from what the customer is willing to pay for it.
In my opinion it is the customer that determines the value because they’re the ones willing to pay for it. However, it is worth noting that just because you’re unable to sell to one group of people, doesn’t mean you’re prices are too high.
It might just mean that those people don’t see the value in what you’re selling.
But maybe another group will.