Small Business Revitalization Blog

Has it ever occurred to you that what you think is great service is actually only the ‘entry level’ activities which allow your clients to put you on the list of possible suppliers? If not, you may be in for a rude shock!

Recently I listened to a senior manager from a large transport company talk about the new improvements to their tracking technology and delivery service. The transport company thought they had delivered an exciting groundbreaking service.  

My business coaching client who uses this company was scratching his head wondering what was so special – these were things he’d been requesting for years!   All they’d done was fix the bugs in their systems and provide service basics that should have already been available!

Sadly this amazing new service was at best the ‘point of entry’ from my client’s perspective – so instead of being ecstatic about this news, my client took it as ‘done, thanks, what’s next…’.  

Imagine if this transport company had taken a little time to talk to their clients and include some ‘extras’ which would offer their clients genuine and extraordinary value based on their knowledge of the transport industry and their clients businesses.

What if they invited the top 10 fastest growing clients (yes there are plenty out there even in the GFC!) and took them away for a business building weekend…   Any business owner who has double digit growth in this market would jump at the chance to meet others with similar experiences… who knows what business opportunities could arise from such an event! Most importantly, the transport company would be positioned as the really smart operators who created further growth in their clients business…

Think about this for one second.  If these businesses grow even faster, the transport company grows too -  each of these businesses rely on transport for customer deliveries… it is a total win-win! Why wouldn’t you do it?

What extraordinary experiences and ideas can you offer your clients for mutual benefit?  Take 10 minutes to think of 5 'A List' clients and 5 phenomenal ways to add value to both of your businesses.  Then action at least one and measure your results!  My business coaching tip for this post? You may want to work ON your business more often!!!

Every business owner knows how important it is to have a point of difference, but few businesses take this seriously and effectively establish a truly unique position in the minds and hearts of their customers.  And of those that do, few ever leverage those factors that make the business special and desirable to anywhere near the profit potential of the initial idea.  In my business coaching sessions, I often work with clients on these two issues, as they offer some of the best insurance around for creating a successful growing business which is hard for competitors to copy.

The trend for TRANSPARENCY is just one approach you can consider…
There are many industries where customers are highly aware of the risks of being ‘ripped off’ or taken for a ride. If your business is in one of these industries, you have a golden opportunity to deliver way more than your customer expects.

Find ways to make your business dealings transparent to the customer. The more honesty and integrity you can demonstrate, the more trust you can build and the more referrals you can receive and the more you will be able to charge. This works especially well in highly competitive industries or industries where the client requires a high level of trust in you to commence the relationship eg financial services or construction.

What would it take for your potential customers to trust you? What could a transparent business model look like in your industry?

Need some support in discovering your goldmine?  Contact Lisa Murray to arrange your free business coaching session. (No obligation, 30 minute introductory session for new clients only)

Got a comment?  Share your thoughts below...

		As a business coach, I get to talk to lots of business owners about the nitty-gritty of their business success.  Lately I’ve been observing the ‘I won’t’ phenomenom killing off small businesses in droves.   What happens is that the business owner is too tired and worn out, too bored or too scared to take the next set of steps that will really move the business forward.  In some cases, they have made so many decisions and put so many limitations around how the business runs, that there is no room for creativity, innovation or taking any of the risks which could bring in a swathe of new business. Take a pen and paper and write down the one thing you would most like to achieve in your business over the next three months.  Now write a list of everything that is stopping you from achieving this.  When you look at that list of limitations, how many of them are self-imposed?  How many of them could be solved by talking to a coach or mentor or getting in some additional expertise?  How many of them can be solved by taking a different point of view?   Take steps to reduce or dissolve every possible limitation on your list.  Does your target look much more achievable now? When we outgrow our limitations, we can expand our businesses in ways which were unimaginable just a short time ago.   Wherever you are unwilling to do or change something, you have set (sometimes unconscious) limitations upon yourself and your business… I recently undertook this exercise and it opened up a whole new perspective on my business!  What can it do for yours?  (And if you didn’t do the exercise, it pays to remember that denial is disempowering…the more willing you are to perceive a new perspective, the more successful your business will be!)

Here are three practical approaches to putting a circuit breaker into your business challenges so that you can move forward…

1. Get really clear about what the gap is: What exactly are you finding impossible? What don’t you have that you need? Why can’t you achieve your vision?

2. Be willing to own the gap! Be willing to be in allowance that the gap exists. Once you see that it’s just a gap, you’ll start to find ways to fill it easily.

3. Ask lots of questions around the specifics of your gap: Who do I know that could help me here? What are the possibilities of finding…… (whatever you need). What would it take for this to happen? When you start asking questions, synchronicity will find you in perfect timing!

Here’s how it works… Last October I decided to write a book. But I kept getting stuck on how I would promote the book – (Publicity hound is not my most favourite job description!!). Eventually I decided to ask a question… “What would it take for me to attract the most phenomenal book publicist?” So I asked the question and kept moving with the book (I am writing in my ‘spare’ moments…!) Recently I realized my question had been answered – one of my new clients specializes in author publicity! So how does it get any better than that? What else is possible? Maybe I’ll get on Oprah yet!!

So, identifying and owning what was keeping me stuck was the key to asking the question that made me feel free! Ask lots and lots of questions around all areas of your business that are stuck – you may be surprised by the outcome! Magic can happen you know…

This is a really simple but highly effective process - if you use it! Some days I just ask questions because my day hasn’t been quite exciting enough yet – often I get a call within minutes with some new exciting opportunity in the offering…ask questions but don’t worry about the answers – that bit isn’t always your job! See that guy on the desert island? There’s a reason he’s stuck!

Albert Einstein was a genius problem solver (amongst other things…) – he offers some good advice: "Out of clutter, find simplicity. From discord, find harmony. In the middle of difficulty lies opportunity."  I suspect he asked a few questions in his day...

What is your biggest challenge around getting unstuck? Share it in the comments section below. If you need to share more than just a comment, call the Revitalization Experts!

Pricing is the most common element to be adjusted in the marketing mix during recessions. Why? Because on the surface the price is what potential customers are responding to. However, research into consumer behavior trends has shown that changing other areas of the marketing mix (ie product, promotion or placement/distribution) can be much more effective!

Your pricing strategy impacts your long-term positioning and image. Becoming known as a discounter during the recession does not position you for a strong come-back when the economy starts to recover. Here’s three things to try instead of discounting your prices:

1. Understand your client! If a client asks for a discount, delve deep into what they are really trying to achieve. Instead of offering a flat discount, you could add additional value for the same price, decrease the product/service offer to more closely meet their needs (ie align your offer with their preferred price). Alternatively use a differentiation strategy: if you are the expert and they really need you – stand firm on your pricing. As Warren Buffett remarked:  "Price is what you pay, value is what you get." Know the difference and communicate it to your clients once you know what they really want from you!!

2. Innovate… If you only offer a ‘first class’ price, introduce a business class and economy class version of your service or product. Do whatever it takes to get prospects on side and the money in your pocket instead of your competitors. Sometimes, instead of upselling, you may need to ‘downsell’ to get the sale. Remember, all value is relative! Create value at multiple levels – redesign your offer to suit the market’s current needs. (I’ve just done this – very soon you’ll be able to purchase business coaching in one-off 15 minute packages – much more affordable but still with the same high quality!!)

3. Avoid profit wars. Getting into a bidding war with a competitor is a sure-fire way to lose your business if it happens regularly. Put a limit on how many times you will re-quote. Put a value on whether business with little or no margin is of any benefit to you in reality (mostly it’s not). Be willing to say no! This is tough to do in tough times, but unprofitable business deals will drive you out of business faster than a lack of business will – never make a loss upfront unless you have a strong backend or strategy for achieving repeat sales at a profit!

What is your biggest challenge around pricing? Share it in the comments section below. If you need to discuss more than just a comment, call the Revitalization Experts for help!

 1. Competitive pricing – where you study competitors pricing and align your pricing around your competitors price, depending on how you position your products and services.

2. Cost plus mark-up – Instead of considering competitive pricing, review your own cost structures – if you are more efficient than a competitor you may be able to price lower and offer products of similar quality, or you may be able to enjoy higher profit margins! Be careful to ensure that your pricing is in line with customer expectations or you may not find yourself in a competitive position.

3. Loss Leader – a common marketing strategy where a desirable item is sold at or below cost to attract new / more customers. Combine with an up-selling or cross-selling strategy to achieve profits short term.

4. Overstock pricing – Excess inventory can be sold at a strong discount to avoid storing or discarding it. Useful when you need to minimize losses. Inventory management is a higher priority than profit if you are using this strategy. Overstocks can also be used as a loss leader.

5. Bundling and quantity discounts - Reward customers for bulk purchases by offering quantity discounts or bundling complementary products. Bundle overstocks with popular items to avoid overstock sales. Bundle a new product with established products to build awareness. This is a great value-add strategy.

6. Membership, loyalty programs or trade discounting – Knowing what an A+ customer looks like for your business can help you segment and attract business from profitable customer segments by offering special prices. You can use selective discounting, percentage off savings or other rewards to keep these clients loyal.

7. Versioning – This strategy is very useful for services and technical products. The same basic product or service is sold in a number of versions. This is where you see free trials or basic versions available very cheaply. Consider adding upgrades, additional services or risk management type products (eg warranties, insurance etc) to your base product.

There are many more pricing options to consider, however these are good basics to consider when deciding how to price your products and services. Next post we’ll consider how to maximize pricing during a recession.

What is your biggest challenge around pricing as a small business owner? Share it in the comments section below. If you need to share more than just a comment, call the Revitalization Experts!

+ What feedback have clients and prospects given on my pricing lately? (Were they overwhelmed by the great value offered, or were they arguing over the bill?)
+ What is the value I am delivering compared to competitors? Where is my pricing compared to competitors?
+ How do I want to position my products or services? As really amazing value for money or at the higher end?
+ If clients are asking for discounts, have I negotiated on what I'm offering them, rather than on my profit margin or prices?
+ If you are changing your pricing consider: What will be the impact on sales volume? What will be the impact on profit?

What is your biggest challenge as a small business owner? Share it in the comments section below. If you need to share more than just a comment, call the Resuscitation Experts!