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
Olympic Dreams Similar to Business Dreams
Filed under: Business Coaching, business advice
Believe in Your Business; Believe in the Dream
In watching the Vancouver Olympics, I got inspired by the journey of an Olympian. The time, money, diligence, hard work and undying spirit it takes to keep a dream of becoming the best at what you do in your sport alive is very similar to the same drive many have as business owners in making a business succeed.
Why do we sometimes let our dreams go or get lazy in trying to build the business of our dreams? Do we loose hope or desire? Shouldn’t we all take the lead from the Olympians who if they just gave up – their time spent and dreams would be wasted?
There are so many stories you can draw inspiration from, Short Track Speed Skater, J.R. Celski, is just one of many.
Celski hit the boards coming out of a turn while skating last year. The first few inches of his right skate blade sliced into his left leg near the knee causing him to be rushed to the hospital for surgery.
Prior to the accident, the 19-year-old skater from Federal Way, Wash., finished second behind Apolo Anton Ohno in the overall point standings, enough to qualify him for a spot on his first Olympic team. But would this injury mean his dream of becoming an Olympian was over? NO – even though many may have thrown in the towel. Celski spent a short time in rehabilitation and as soon as he was able, he was back training and strengthening his leg to skate in the Olympic Games. What drive an athlete must have to keep a dream alive even after the devastation of an injury.
And what happened next – all of the hard work came to fruition when Celski won the bronze metal just a few days ago in the Vancouver Olympics. He could have given up – thinking he had no chance to rehabilitate his leg and make it to win a metal in the Games, but he didn’t let the situation get him down.
Now many business owners have kept their spirits alive despite the dwindling economy, but others have let the economy and other factors become an excuse as to why they should give up their dreams of a prosperous business.
During challenging times, when you aren’t sure what direction your business will take, remember to stay positive and challenge yourself to keep the dream alive. Believe in yourself and your business.
Many Olympians struggle to afford their training, have little money to support themselves, but they find support thru alternative methods to keep going. They believe in their abilities and continue to strive for gold.
If you are looking to keep your dream alive, but need some direction as to what step to take next why not lean on a coach for direction like the Olympians do?
Are you ready to make a change?
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.
Business Seminars
Sign Up for our one of our FREE Business Seminars.
Simply click the link below to get started.
Use Promotional Code "ActionBlog" for FREE registration.
-
