(Add to Favorites | View All Articles | Resource Directory)
|
|
|
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. ANOTHER EXAMPLE 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.
MORE RESOURCES: News provided by Yahoo! News and Google News Small Biz 101: What is Health Insurance? - Clarifying Health (blog) Ins. Hike to Hit Small Biz Hard - Go By Truck News Defense authorization bill changes small biz contracting - Washington Technology Business Barometer®: small biz confidence leaking oil in December - Canada NewsWire (press release) On Deck Capital: Big IPO for Small Biz Lender - Investorplace.com Small Biz in A Digital Age: Cross-Promoting - GoLocalProv Creditera Demystifies Small Business Credit Importance of integrating social media, small business |
|
|
|
RELATED ARTICLES
Essex Accountant: Accountancy Firm MVP for Your UK Business? Most business owners know when they need an accountant, but they do not realize how important the task is or how much their results can vary. No other job position outside of your own is going to affect your bottom line like an accountant and contrary to common belief, the job is not just about crunching numbers. Starting a business transporting pets Pet Transportation Services are needed as the number of pets in the U.S. Getting Grant Funding For Your Nonprofit Organization Do you need grant funding for your nonprofit organization? If you do you are most certainly not alone in your needs. This combined with the fact that because of regular government budget cuts there's not as many federal dollars available as there once was. Tell people why they should do business with you Here's why 'WHY' is such a profit-making marketing trigger."Stop taking two and three plates of food," my mother said to me angrily. Pressure Washer Companies and Steam Cleaner Maintenance If you run a pressure washing business it is a must that you understand and take care of your equipment. It is your livelihood. Don't Wait for the Perfect Plan 1. Don't Spend Too Much Time PlanningWhen you are entering a new market, you won't know the hidden problems and challenges you will face. A Small Business Consultant Can Help in Many Ways... But One Thing He Can't Provide A consultant must remember that the business belongs to the client. There is always a danger that the consultant will take a dominant position to the detriment of both of them. Starting a Mobile Auto Detailing Business; Dry Wash or Pressure Wash? Many experienced auto detailing professionals who have started out using a pressure washer rarely use Dry Wash n' Guard. Most would say this is a matter of preference more than anything else. Clever business names are usually a mistake You bet a name is important. Many small business owners try to come up with a clever name for their business rather than one that explains what they do. Small Business Essentials: Start Here Thinking of starting a business on line? If so there are two things you absolutely must commit to before ever opening shop on the web. Any one who refuses to realistically consider these two factors should not be in business. How To Select a Franchise Here are some useful tips on how to select a franchise. When selecting a franchise, carefully consider a number of factors, such as the demand for the products or services, likely competition, the franchisor's background, and the level of support you will receive because like any other investment, purchasing a franchise is a risk. Do You Microbifer in Your Cleaning Business? Microfiber cleaning towels have been around for about ten years now. When I first heard about them they were being sold through distributors in an MLM business. What does business success look like? When you hear the word "success" does it bring on visions of fame and fortune for your business? Have you clarified and articulated what that success will look like for your business and how you'll know when you've achieved it?What's the definition of success for your business? Most small businesses are selling their time and expertise to deliver a service to their clients. So the question I want you to reflect upon is this? "What does success look like?"Now before you start answering with responses like, "I'll do $X Million in sales this year. Freelance Tips: How to Cope with Spring Fever When Theres Work to Be Done We all know how glorious those first warm days of spring feel. The trees are blooming, the birds are singing. Mobile Car Wash Market Opportunities in California The current lack of industry leaders represents an exceptional opportunity for a large and organized mobile car wash company to achieve regional domination and eventually dominate the Southern California carwash market. The best place to start a regional assault on this market would be to concentrate North and West of Los Angeles; Chatsworth and Simi Valley to Malibu and Tarzana to Santa Barbara. Creating Lists to Learn About Yourself, Your Business and Your Customers I love lists. I make them for everything. Employee Induction - Are you Inducting your People - A Practical How To In today's fast paced marketplace it is easy to neglect the small important things!Recently we assisted an organisation prove they had complied with their obligations in inducting their employee. The employee tried to bring a claim for severe stress against the business. Business Owners - Do You Actually Own a Job? How many hours do you work a week? When was the last time you took an uninterrupted holiday? Do your staff have a better job than you? Now ask yourself, Do I Own a Business or a Job- with Overheads? Are you happy about the answers to these questions? If not, read on.In Empower Business Solutions experience, too many owners, after investing their time and money, have not got a fair return from their business. Image of Your Franchise Automotive Outlet is So Important Image of your franchise automotive outlet is so important. Some say image is everything, well then if you buy a franchise you should be constantly thinking of image and cleanliness. Do Your Best; Hire the Rest One of the hidden perks of raising six children is the learning laboratory it provides for the parents. My wife and I have learned how important it is to teach our children to do things for themselves and become problem solvers.
|
| Home | Site Map | Privacy Statement | More Articles |
| © 2006 |