|Small Business Information|
Small Business Pricing Strategies
TACTIC #1 -- Never simply slash your prices, unless you're trying to empty obsolete inventory. Instead, try repackaging your prices so they're more affordable in the short-run so more prospects can afford them. For example, rather than pricing your service for the year, "Our monthly newsletter is only $39 for the year." Instead, try "Our monthly newsletter is only $3.25 per month." If you accept credit cards, it's very easy to set up reoccurring monthly charges that are billed to your subscribers without having to intervene every month beyond the initial account set up. The upside to offering your subscription on a monthly basis is that you can now market a $3.25 headline versus a more expensive $39 headline, i.e. you're able to offer services at a more affordable rate without slashing prices.
One-off sales don't lend themselves to growing a profitable business; rather, deep customer relationships do! However, since I was able to establish a trustworthy and comfortable relationship with my prospect on the phone, she thought my marketing services through email would be a win-win. Did I slash my prices? No, instead I found a more efficient way to offer my services, whereby I could offer them in less time and therefore, my client will pay less money. This strategy could work for business coaches, fitness experts or personal chefs, when the latter prepares meals in her home rather than in a client's home.
TACTIC #2 -- Create tightly niched product or service offerings. For example, if you're operating a personal concierge service, rather than just offer errand services at $25 an hour, try prepackaging specific errands with associated lower pricing. Why? Because you can offer a more aggressive price when isolating your fee to one particular service. If your customer challenges your reduced price as compared to your higher hourly fee, your response is simply, "I'm able to offer this lower packaged price because of economies of scale. While I'm out delivering your bundles to the Post Office, I'm also delivering packages for five other customers." Ultimately, your customers will never know how many other customers you're delivering for that day; however, the key is not to simply slash your pricing because you believe that reducing your prices will bring you more business. The key is to provide consistent and professional pricing practices.
P.S...Yes, business is slow for many entrepreneurs right now; however, be cautious with your pricing methods. Don't simply slash prices; instead incorporate long-term and short-term strategies that are always complementary to each other. If you offer a product for $15 today, then again at $35 six months from now, you must have your reasons in place, otherwise you'll aggravate your customers.
Sharron Senter is a New England-based marketing consultant, speaker, writer and founder of Senter & Associates, a marketing communications firm that helps small businesses deploy low-cost marketing strategies. Sharron is well known for her free monthly emailed marketing tips, found at http://www.sharronsenter.com. She's also the cofounder of http://www.VisitingGeeks.com ? an onsite computer repair, networking and security company based north of Boston.
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Is Your Business Property Safe and Secure?
Security Professionals provide the products and services necessary to create a safe and secure workplace for you and your employees. Products such as lever hardware, panic and exit devices, desk locks and high security key control systems, as well as security boxes and safes, can help you protect your business and property. In addition, electronic access control systems can be designed to restrict access to the building or business complex in order to increase security and control.
Essex Accountants: Top Things to Look For
One of the most common horrific mistakes a business can make is hiring the wrong accountant. Once hired, it can be very costly to hire a replacement accountant due to the nature of the job which inherently and directly impacts your bottom line. Choosing the right accountant for your business can mean the difference between success and failure. Read on to find out how you can keep from making the same costly mistakes tens of thousands of businesses make every year.
7 Tips To Improve Your Cash Flow
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Do You Need the Help of a Virtual Assistant?
Running a business, whether large, small or in your home, is full of challenges. Getting the day-to-day tasks completed, e-mail, faxes and telephones answered, bills and statements sent out, reports run, schedule updated, travel arrangements made, marketing pieces and website updated, as well as a plethora of other tasks, can be downright daunting.
Tell Me The Reasons Why I Should Believe You?
Have you ever heard the phrase, 'PREPONDERANCE OF PROOF'?
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Mobile Truck Washing, Case Study
Most folks in the pressure washing business are happier to do business cleaning concrete or flat work, because it appears to be easy. Some do both fleet truck washing and concrete, which makes sense. But what some do not understand is once you are totally efficient at truck washing you can surpass the dollars per hour that those in concrete cleaning generally charge. I have been washing fleets of trucks for over 12 years. What I have found is that our car wash guys www.carwashguys.com which is a mobile car wash business ended up being a fleet washing business and not only for car washing. This is because customers needed services and kept calling and we were able to do the work as good as any company could.
Serious About Writing A Business Plan... Start A Business Plan Library
Tap these treasures of ideas. The best money you can spend is money invested in your business plan education. Don't shortchange yourself when it comes to investing in your dream. Start gathering samples of business plans and collect business plan books and get a business plan library started, it can change your future. Here's what your library needs to show: that you're a serious student of business strategy and planning, finance and economics, selling, and writing.
Its Spring - Time For A Compensation Program Tune Up
Now that winter has passed, the annual ritual of spring cleaning is in full swing. Spring cleaning is more than cleaning the windows and clearing the cobwebs that hid in the corners during the winter. "Spring is a time to take a serious look at your compensation program and begin planning for the next budget cycle. Depending on your organization's fiscal year, it may also be time to determine appropriate market adjustments and pay increases for the coming year," said Michael Maciekowich, National Director, Astron Solutions.
Grants vs. Contracts
Commonly folks have asked me what the technical difference is between a contract and a grant. The difference is not about the dollar value or who the buying entity is nor the kind of work being done. Instead it is about the legal concept of default. In my eyes, the corner stone of whether something should be called a grant or a contract lies in whether one is legally bound to produce results as one is in a contractual relationship or whether you are simply granted funds to do something. Did you get that nuance? Perhaps that is oversimplifying it.
Marketing Your Small Business with Success Stories
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Big Successes Never Happen Overnight
Treat your business as a serious, full-time business and be serious about making it work. Put your plans on paper. Neglecting to develop and follow a consistent marketing plan can be devastating to the growth of your business. Big successes never happen overnight. Market and promote your business everyday. There are subscriptions available that can assist in your conquest to success.
How Disabled Veterans Can Win Government Contracts
The Service-Disabled Veteran-Owned Small Businesses (SDVOSB) is a program that allows small businesses to self-certify as service-disabled veteran-owned businesses providing them increased opportunities to win government contracts. Significantly and permanently impaired veterans may be assisted in the daily business operations by a spouse or permanent caregiver.
Accounting Methods ? Cash and Accrual
When starting a business, you have to determine the method you are going to use for accounting and paying taxes. The two choices are the cash method and the accrual method.
Look Like Sizzle, Be The Steak
You've heard marketing and advertising gurus quip, "Sell the sizzle, not the steak." Advertising initiatives best reach their target audience with benefits and the "wow" effect, not the value or features of their product or service. This may work well to get customers in the door. But once they're in, you better have some substance. How can you ensure you uphold the integrity of your business and still maintain the "Wow Effect"? It just takes well executed strategic steps for business AND personal development:
Who Does Over Disclosure Really Hurt In Franchising?
Costs of over regulation and over disclosure end up hurting the very consumer that the regulatory bodies are trying to protect. Over disclosure and over regulation is in itself the worst evil of civilization, as it stifles free enterprise, innovation and free markets. In franchising the disclosure documents have in fact grown to over 200 plus pages in length on average. You should be happy you are not a tree in the forest right now.
Where to Find a Cash Windfall of $10,000 to $1,000,000 -- You Never Knew You Had
There is a rather famous true story called "Acres of Diamonds".
How to let go of your EGO
When does your ego get in the way?
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