FEAR! False Evidence Appearing Real is one acronym..(F*** Everything And Run is another!)
Well, it wasn’t a crocodile, which I was glad about, as it was in the middle of the Botanical gardens in Brisbane, but guess it was put there to deter naughty children splashing in a pond they didn’t want you to splash in.
So, what has this got to do with business I hear you say? Well so often we are scared of stuff in case it affects our businesses in a detrimental fashion, without checking out the veracity of the facts.
This can be in many areas but the one I want to draw attention to is the fear that many business owners have about price.
Many business owners are terrified to put up their prices! In many years of business strangely enough, price has hardly ever been an issue.
Service and quality have been.
If we worried about service and quality a fraction as much as we worried about putting our prices up, we may see a massive difference in our profits.
But here is a little purely mathematical table which is worth pondering over. Firstly, what happens when we put our prices UP and the second chart when we discount our prices.
It then correlates – depending on your margin – as to how much that you potentially will lose by way of customers if you put your prices UP, and how much more you have to sell if you put your prices DOWN (Chart 2)!
I used to call this the lazy Business Coach’s way to make his clients more money! 13 years ago when I first started Coaching it was! Stick your prices up 10% no problem – and I’d look the hero! It worked, but things have changed!
You can still put your prices up and make more money but if you are crass about it and just ‘stick them up 10% regardless’ it can backfire badly.
Why? Because we have instant access often to accurate prices to compare with our competition and brings me back to the first point.
Service and quality.
Pricing is like a spring. An untensioned spring is flaccid and useless. A nice amount of tension with a little push back from customers is just right. An over-tightened spring bursts and is useless, which is why an arrogant pushing up of your prices could leave you broke as well.
It is tricky and requires research and a good think!
Service and quality on the other hand is a no brainer. Yet so few take it really seriously. You get automated surveys which are entered in data sheets which rarely are looked at, and rarely implemented.
Pathetic! Speak to your clients face to face! Listen twice as much especially to the innuendos and half comments when they are speaking, and ask the question ‘And what else?’
If someone comments that ‘you are too expensive’ can you hand on heart say ‘but our quality and service are exceptional and second to none’ in reply.
Now price and the ‘how-to’s’ are a tricky business.
With 50 years business experience I have seen plenty botched attempts, and it is too easy to fall into traps yourself.
That is why so many of my clients call me ‘their friend in the Boardroom’ and if you want to know more – I am very approachable and will not give you some fancy sales spiel. When you are strongly emotionally influenced , (which is often the case in a decision), it is too easy to make bad decisions.
Think of the cost to NOT hire me, and the cost to NOT solve your problems
Here are the charts, and if you want me to send you a copy, direct message me – and don’t worry you won’t be bugged and put on some confusionsoft barrage of endless emails as a result!