How To Structure Your Sales Part 1
There are 6 ways you can sell products and services.
These will be listed in the order of least effective in retaining customers to your business/ least valuable to buyers, to most valuable and highest ability to retain customers.
- Consumable product/service with multiple competitors- Example- Coffee
- Sunk Cost Consumable product/service- Example- Keurig machine
- Subscription based product/ service- Example- Magazine
- Sunk cost Subscription- Example- Amazon yearly fee w/ auto reorder on consumables
- Auto Renewal service- Example- Insurance or storage
- Contract Revenue- Where someone is contractually obligated to continue to buy from you
Keep these in mind when setting up how you market and sell your products. The higher up the ladder you can climb, the more likely you are to retain your customers and have a higher valuation when/if you decide to sell your business.