It’s almost the holidays and you know what that means? The Victoria’s Secret holiday catalog will soon be hitting mailboxes. Gracing the cover is usually one of the retailer’s gorgeous “Angels” sporting a bra that either makes you go “Ooooo!” or “Huh?” Encrusted with diamonds, precious gems, and gold, this bra will bust almost anyone’s bank account with an astronomical price tag that could be in the millions (the 2012 “Fantasy Bra” was over $2 million). So… who wants a $2 million bra?
Granted, this jeweled concoction is a showcase piece to get attention. But once the photo shoot is over, who’s going to buy it? Obviously someone who’s not concerned about covering cleavage or costs! The list of potential buyers is short indeed, making this an extreme example of a limited market.
What about your market? Do you have a totally unique product or service that has a limited number of ready, willing and able buyers? In the quest to create a name and niche for themselves, entrepreneurs can often slip into “$2 million bra” territory. Their offerings are so one-off, off-the-wall or custom that the appeal and market volume are limited.
As well, businesses with create-to-spec services and products (maybe even a gemstone-studded bra?) run into a related problem. They don’t scale. The slice of the market they can pursue is restricted by the time, energy and other capacity factors of their operations.
How do you know if you have a limited market? Here are some of the markers:
Let’s say against better judgment you decide to pursue this limited marketplace because you’re emotionally attached to it. What are some strategies you can employ to create an acceptable sales volume?
So when considering a new business or market, just make sure it fits and can support you.