Small Business Revitalization Blog

 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!

As the economy grinds to a halt, more small business owners are starting to feel stretched - for cashflow, for goodwill, for sanity.  The first step away from stress and feeling over-stretched is to consolidate with your support team.  

What's that I hear?  You don't have one? Business owners often have a sense that they have to shoulder their burdens alone. Often our needs come last - after clients, staff, suppliers, the bank manager and our friends and families.

Many of us have grown up in times when it has been seen to be a good thing to be independent (and it is!), but often we have misidentified this independence with never, ever asking for help, no matter how bad things are.  Just like the economy, that approach just doesn’t work anymore!

Just before Christmas I had lunch with my dearest girlfriends – we’re moving towards 25 years of friendship – but still, we often forget to ask each other for help.  

We hadn’t seen each other for months and there were lots of big discussions on the table.  At the end of that lunch we made a promise to each other to pick up the phone and ask for support when we need it – not to wait until our busy lives allow a small window of opportunity for a catchup!

Sometimes it is these small but incredibly life-affirming commitments that give a greater sense of empowerment.  What could you do if you knew your support net was available any time?  So, create and maintain a support network of likeminded people.  There is strength in numbers!  You are no longer the weakest link!