A myth about your pricing strategy

There a number of myths about creating the right price for your customer and developing a pricing strategy that is right for your business – here is one of my favourites - If you are more expensive than your competitors then this will give them an edge and customers will choose them instead of you

 

It’s quite easy to see why the majority of business owners might believe this to be true - especially when you consider that most of them believe that people make their buying decision based on price and price alone

 

But let’s take a step-back from business and look at things rationally

 

When we look at business objectively we know that this just isn’t true - because if it was, car makers like Ferrari, Maserati and Porsche and all of the other premium makes would be struggling for business – and we know that just is not true – recent reports show that Rolls Royce increased their sales 5 years in a row smack back in the middle of a double dip recession while some of the cheaper car manufactures nearly went out of business and had to be bailed out by the UK government!

 

There are, of course, those customers who only buy the cheapest goods at the cheapest price – those customers who will move from supplier to supplier in order to get the price down – and there will be suppliers who will deliberately cut their prices in order to obtain work at any price.  But the majority of customers don’t - even if they say they do!

 

But then, on the other side of the coin, there are those customers who enjoy spending more on what they buy in order to get better quality products and services and a better overall customer experience

 

There are even customers who believe that you get what you pay for and who therefore won’t buy something because it seems too cheap!

 

Being cheaper than your competitors doesn’t give you an edge. Chances are you will be chasing a completely different customer from your competition.  Think about EasyJet and the other budget airlines – not to say that given the right circumstances a typical Virgin Atlantic customer would not travel with a budget airline – but in the main a Virgin Atlantic customer travels with them for a reason – and that reason is unlikely to be about price

 

When thinking about your own business always remember – good work is never cheap and cheap work is never good

Let your competitors fight with each other for those price buyers, while you target the VIP first class clients who want to spend more, buy more often and appreciate the true value of what you offer

Why?

 

Because the people that buy more often and appreciate the value of what you do tend to be your best clients - and the opposite is true for price buyers

 

I'm yet to meet anyone who actually enjoys working with 'price buyers'

 

The thing is if you're doing business with people that you don’t enjoy working with, two things are true:

 

1. It is your fault because you allowed them into your business and you keep them there

 

2. You don't have to put up with it.

 

If you do put up with it, then you're making a choice and if you don’t want to put up with it anymore, then you should fire them. It’s as easy as that  

 

If you want to make a difference in your business then price should not be your biggest concern.  Contact us today and see how we can help to solve your problems (and maybe even help you find ways to improve your business so that you don’t always have to focus on price!)

Call us anytime on 084 3289 3288 or email us at enquiries@blueboxconsultancy.com

If you want to learn a little bit more about Blue Box, the things we do, and the people with do it with, then check out our website at www.blueboxconsultancy.com

Until the next time – be bold and do good business

Dealing with administrative tasks to ensure that your business runs smoothly

Welcome to this mini-series of posts about managing those pesky admin tasks in and out of the office

In this series of posts about business administration we will be looking at some of the different issues facing business administration staff when generating internal and external business documents. We will also be looking at the importance of having procedural documents in place for handling staff issues and business processes and of course debt collection.

In this weeks post we begin by looking at the top 3 benefits of having a planned and written structure in all aspects of your business:

1.      Whether you are in a manufacturing or a service industry in order to maintain quality and efficiency it is important to have a clear process for you and your staff to follow. It is important to break down each aspect of your business and set the process out and ensure each member of staff knows when and how they need to do certain tasks to avoid the repetition of tasks and wasted time, for example, there is no point putting a lid on a jar until the jar is full.

2.      If you have employees you should implement a staff handbook or at least a clear and concise contract. Whichever method you choose should lay out company policies on HR related issues such as absenteeism, disciplinary procedures, Internet usage policy, how and when the employee will be paid, not forgetting the realms  of their responsibility. You can also include any company benefits in this document.

3.      We have already looked at disaster management in some depth in a previous post. However planning in advance can be such an important factor in the survival of your business it is worth going over the main points to include in your disaster recovery plan such as, what will happen if you cannot use your premises or equipment for any length of time? Have you got enough money put by to carry you through a period where you are unable to trade? Have you got adequate insurance? All of these questions should be answered in a good disaster recovery plan.

When you have considered each of these points and created the documents your business is likely to run much more smoothly. This is because everyone knows what they need to do and it reduces the room for procrastination as the direction you need to take is planned for when those unfortunate unforeseen circumstances actually happen. Don't forget that a lack of planning for an emergency can spell the end of a business, but with good planning you can reduce that risk.

If you are struggling with any of the issues mentioned here, Blue Box Consultancy can provide a comprehensive business support package to existing and new customers

Join us next time for a brief look in to correspondence concerning debt collection.

In the meantime, if you would like to discuss your business needs, then you can email us at enquiries@blueboxconsultancy.com or call us on 084 3289 3288

If you would like to know a bit more about Blue Box, the things that we do, and the people that we do it with then check out our website at www.blueboxconsultancy.com

Until the next time, be bold and do good business

5 words that strike fear into my very soul....

Business development is crucial in any business – that is, doing whatever it is you do in order to win and retain new business (and that could be new business from an existing client, or new business from a brand new client – in our case, the process is exactly the same).  At Blue Box we do a lot of Business Development and we like to think that we are quite good at it but when we are in business development mode there are 5 words that strike fear into my heart – do you want to know what those 5 words are? The 5 words that frighten the life out of me and want to make me run for the hills are – HOW MUCH WILL THIS COST It is not the use of the words that frighten me, it’s when the words are used that terrifies me most   These words can have two very different meanings depending on when they are used   Don’t get me wrong, I know that if someone is going to buy from me they will need to know the price at some point   I’m fine with that, In fact, if I’m asked that question towards the end of the sales meeting it’s a good sign,  It shows that I’ve done my job properly and that the prospect actually wants what I’m selling; assuming the perceived value they’ll receive far outweighs what they’ll have to pay   It’s when the words are used at the very start of the meeting that I get a bit wary   And for good reason too, If someone is asking me the price before I’ve even begun my sales pitch, before they even know what it is I’m offering and before they know whether or not it can solve the problem they’re facing in their Business, it tells me that ‘price’ is their number one concern   In other words they’re a price buyer.   This isn’t always the case of course but more often than not, asking me ‘How much will this cost’ before you even know what it is that I am selling or how it will potentially solve a problems that you are facing, and how much money it will save you or make you in the process is a tell-tale sign if ever there was one   And when it comes to our business, people who buy solely on price are probably not the right type of customers for us – it is not that price is not important – it absolutely is, but for us, value and return on investment are much more where we are at If a customer asks immediately ‘how much will this cost?’, then I have not done a good enough job in identifying their needs or selling our services If you want to learn more about our services, the value that they can add to your business and the money that we could potentially save you, then call us anytime on 084 3289 3288 or email us at enquiries@blueboxconsultancy.com If you want to check out Blue Box then go to our web site at www.blueboxconsultancy.com Until the next time be bold and do good business