Business Tips Blog
Enjoy Evan’s easy-to-use advice for your business.
Pricing Basics (Don’t Stab in the Dark)
Do you ever feel that setting prices is like stabbing in the dark? It shouldn’t be. There’s an art and a science to price setting that, when followed, will immediately increase your profit. This is why, when I’m starting with a new client, we often start by revamping their pricing. Done right, it’s instant profit in the bank. Here’s 4 basic considerations to set smarter prices and make more money, and they apply equally whether you’re offering products or services. [margin30] [div style=”float:left;margin-right:20px”] 1 [/div] [div style=”overflow:hidden”] Your Cost to Offer the Product or Service Taking into account your cost may be obvious, but there are two things important to say. First, don’t forget to factor in the value of your time and your team’s time. And second, don’t stop your pricing thought process here! Just because you have positive profit doesn’t mean you should offer it at that price…you …
Three Things I Learned in India
I just got back from two weeks in India, and I found it’s a land of entrepreneurs. Unlike the developed world, where big chain stores dominate the landscape, Indian cities and towns are full of mom & pop ventures. Here are a few lessons I took from watching storekeepers, craftsmen, and other enterprising Indians. [margin30] [div style=”float:left;margin-right:20px”] 1 [/div] [div style=”overflow:hidden”] Recommendations Are the Best Way to Stand Out Feel like you’re in a competitive business? Imagine selling blankets in a bazaar surrounded by 20 other blanket shops. How do customers choose WHICH shop to buy from? Based on recommendations. Just like I got tips from fellow travelers on which restaurants to eat at. And I read online reviews at TripAdvisor to pick a hotel. What can you do this week to cultivate more recommendations? Consider word-of-mouth, testimonials, and online review sites. [/div] [margin30] [div style=”float:left;margin-right:20px”] 2 [/div] [div style=”overflow:hidden”] …
How to Keep Prices High and Still Close the Sale
Ever feel like you need to give a price concession in order to close the sale? WAIT!! Even experienced negotiators encounter this situation all the time. But they’ve got tricks to keep their prices high AND close the sale. Here’s four that I use ALL the time. [margin50] [div style=”float:left;margin-right:20px”] 1 [/div] [div style=”overflow:hidden”] Train Customers Not to Expect a Discount If you give them a discount this time, you’re teaching them to ask for a discount next time they buy. Conversely, if you hold firm now, they are much less likely to even ask for a discount next time. Do you need to retrain your existing clientele? Next time they bring it up, say nicely but firmly: “I’m sorry. I’m not offering discounts any more. I just can’t afford to do it.” [/div] [margin50] [div style=”float:left;margin-right:20px”] 2 [/div] [div style=”overflow:hidden”] Bring the Conversation Back to Benefits When asked for …
What Small Business Can Learn from Super Bowl Ads
You may not have the $3.7 million to buy a 30 second Super Bowl ad for your business, but there’s a lot we can learn from all the money that’s spent airing–and analyzing–these ads. Super Bowl ads are always entertaining to watch, but are they effective at selling products? New research from Harvard Business School shows how to balance getting laughs with educating about the product. Optimizing the Education vs. Entertainment Tradeoff A lot of Super Bowl ads are really funny, but I can’t remember what product they were trying to sell. How effective is that? On the other hand, a lot of small business marketing is very fact-based and informative. But sometimes our prospects fall asleep while we’re describing our product or service. Also not ideal. So what’s the right balance between education and entertainment? The Harvard researchers used webcams to measure facial movements as people watched Super Bowl …