Attention Business Owners: Raise Your Prices!
Most companies can’t compete on price – so why try to?
When financial crisis strikes – most business owners cut their prices to gain volume and scale.
Cutting prices definitely works for a few companies, but the reality is not many – think Walmart, Costco or Southwest Airlines. The success of these companies and their business models makes it very difficult to duplicate. Competitors like Kmart and Sears struggle to compete.
Companies should compete on performance instead of price.
Focus on where your companies strengths lie. Provide superior service to meet your customers needs, communicate with your customers regularly and make sure your sales people speak to the right decision makers to convey your companies value.
Identify Value Opportunities
Even if your product is a commodity, have you looked at ways it can be improved? Perhaps the design or packaging of your product can be improved to lower costs. Can you make the product more efficient for the customer?
Align Price and Value
Set higher price in line with what the customer is willing to pay. Key – is to make sure to document and quantify the precise nature and benefits your product offers. Try to figure out the tangible value that is offered to your customer.
Beware of Poor pricing mistakes
- Average pricing seems fair – UPS used one price for all customers. But when FedEx Corp. entered the market, one reason for it’s success was its variable pricing – taking into consideration times of delivery (early morning vs. afternoon) and weight)
- Cost-Based Pricing is Easier to Explain
- Everyone Else Prices it that Way – be smart about being different. Relying on pricing of the market means you run the risk that your prices are the legacy of obsolete circumstances.
- Nothing We Do Deserves a Premium Price
- The Customer “Tells” Us the Price – What customer wants to pay a higher price? Most customers do seek value – it’s your job to frame and deliver the value proposition and the pricing.
You shouldn’t be afraid, even in a tough economy, to raise your prices. If you can convey the value of your product, the customers should follow.
*Article Resource – Wall Street Journal 5.24.2010
Are you looking at ways you can improve your business?
To make a difference in your business you have to change the way you do things. It begins by attending one of our profit building seminars.
To get started today click the link above. We look forward to helping you grow your business and making the kind of money you always thought possible
Importance of Business Planning in 2010
How Are You Planning for Success?
The power of clarity
Knowing precisely where an owner wants their business to be in 90-days time can be a powerful motivating force.
Do you have a plan for the 3rd Quarter of 2010?
Planning makes it possible to know which direction to orient efforts so the owner and the business arrive at the intended destination at the end of each quarter and the year.
3 reasons businesses will benefit from better planning in 2010.
- Ongoing Planning can help companies navigate through dangers and look toward long-term goals.
- Planning is about managing change – For example, when sales are different than projected in the plan–and many times they are–you have tools for making adjustments to expenses. Good business planning can help companies manage flucuations in the business better.
- Everyone is accountable – when we plan as a team we are all invested in the goals set for the quarter. We know what the numbers are for the quarter that we need to hit and what strategies we plan to utilize to get us there.
Developing your roadmap
By putting focus on the causes of business growth, and putting a plan of action together during a GrowthCLUB planning session, owners – maybe for the first time – can see where to leverage their efforts to produce real results.
“The GrowthCLUB workshop was well planned. The workshop was an amazing value because this information has clarified and further organized everything that we have been working on with the ActionCOACH Next Level Firm. Thank you for the seminar – it was awesome! We really got a lot out of it and are VERY motivated.” – Michele Sibley, New Beginnings Landscaping, LLC www.newbeginningsridgefield.com
The outcome
Jim Malski presenting at the last GrowthCLUB Planning Session
At the end of every GrowthCLUB planning workshop, owners benefit from renewed energy, vision and focus for the next 90-days. They also have a ready-to-implement, real-time 90-day plan of exactly what to do and how to get your business moving in the right direction.
ActionCOACH GrowthCLUB can make a huge difference in just one day for any kind of company. Not only do owners walk out with a better overall understanding of business, they also leave with a 90-day plan specifically designed to immediately impact their own firms.
“The GrowthCLUB workshop was great! It got me focused on the things that I was not focused on. The topics I found most helpful were the current situation analysis, gap analysis and my goal review.” – Jack Lyons, Lyons Solutions, LLC http://www.lyonssolutions.com/
So what’s holding you back …. Building the plan, or executing it?
To make a difference in your business you have to change the way you do things. It begins by attending one of our profit building seminars or 90 Day Planning Workshops.
Our next 90 -day planning workshop is Friday, June 18th at the Mill River Country Club in Stratford, CT. Register now – there is no risk, we provide a 100% Money Back Guarentee!!
To get started today click the link above. We look forward to helping you grow your business and making the kind of money you always thought possible
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