Starting On The Path To Business Planning And Success
As strange as it may seem knowing what your pricing strategy is drives your business success
. Sure your mind-set or psychology, your physiology or the health of your body, and how productive you can be,or if you are a persuasive human being all are elements of utilizing your potential and reaching your goals but what is the value of what you have to offer?
Setting our value is a curious thing that the unsuccessful leave to chance. They say my competition sells what I sell for this price and so I do too. Or that is what the public is willing to pay.
How do you know that your competition has the product or service priced right? How did they come up with that being the value of the service?
Is this the price the segment of the population you want to reach is willing to pay or is it the pricing you think someone might pay or heard that people are willing to pay?
Your fees are often a reflection of your psychology. We have beliefs around what we charge. We tell ourselves we can"t charge more than others or that we are new therefore to get clients we need to charge less so people will give us a shot.
Mary Jo and her husband had this same belief and it cost them their restaurant. It wasn"t in the food court of the mall nor was it on the exterior with the finer dining establishments. But because they were new they lowered their prices to compete with the food court. It was only after they closed their doors they took a hard look at the survey cards their customers filled out.
Most their clientele had been over flow from the nicer restaurants and many had been in more than once. Mary Jo explained they didn"t feel the mall patrons would pay more since no one else inside the mall charged as much.
Also being new they worried about overhead so they offered an online coupon that was a success but left them with little profit.
Had they read the surveys every day they would have seen that they needed to market to the same people who frequented the exterior restaurants and to work with these restaurants during their busiest times to make patrons happy thus creating a win-win for everyone.
Your only competition is yourself and your business. Your pricing should be based on your uniqueness and the value you offer. Mary Jo had excellent food and superb service yet she didn"t think her establishment was any different than others in the area.
When thinking about the value you offer ask yourself:
What is the highest quality thing we do or offer? How do we exceed what we say we do or offer? Where are we different than businesses who do the same thing as us?
The ARKO Success Training System consists of just that a system, processes, and tools to help you reach your potential and success in life. Starting On The Path To Business Planning and Success is easy when you have a pricing strategy.