Price Check
Before you cut your price or offer a substantial coupon, take some time to do a little research. You might want to start with some history -- of the airlines. SouthWest built their business model on being the lowest priced airline and actually changed air travel. Most people now shop airline tickets on price. When your customer shops price, your business becomes a commodity - just like a bushel of corn.
Prior to a implementing a strategic pricing decision, make sure you can answer these questions:
1. Do you know how much money you make on each sale? If you sale a widget for $100 and it costs $50 to make it, you will have $50 left to cover other expenses and profit.
2. Do you have other costs that are always there? These fixed costs are the rent, people, advertising and day to day operating expenses. You will want to know this "contribution margin" or percentage (on average) of overhead needed to support each sale. If your contribution margin is 34%, then in the above example $34 will be your additional cost. Potential profit is now $16 (on average).
3. Do you need to pay to get business in the door? If you are a convenience store, you usually don't have to pay someone to bring you business, but many businesses both offline and online pay commissions and referral fees for leads and referrals that produce sales. So, if a 8% commission or finder's fee is paid in our example that would reduce potential profit to $8.
Let's say your business wants to cut prices or offer a coupon for 10%!
Your price would become $90;
Cost would remain $50;
Overhead would remain $34; and the
Commission would become $6.30.
Your potential profit is now $90 - $50 - $34 - $6.30 = ($.30). Just like that we went from a profit to a loss of $.30 on each sale.
Cutting prices and offering coupons needs to be carefully studied to make sure it fits your business's long term health.
Copyright 2010 Linda Lucas Fayerweather MBA EA
http://www.changinglanes.biz/
What are you doing right now to reach your goals?
Call Linda for getting your plan aligned with your dreams. 419-897-0528
linda@changinglanes.biz
One Page Business Planning Classes are forming - available from your desk! Check out the coupon below. Oh, yes - coaching is included!
Great Referrals are NO Accident - Part 3
Network With a Net
Referral networking is a lot like catching fish by casting a net. Each fish comes to the net by a different path--each has a unique "story" that is not repeated. You don't focus on a particular fish and then try to get it to come to the net--in fact, you probably don't even see the fish until you pull in the net. Instead, you focus on the action of setting the net. You know that if you set your net correctly and consistently, fish will eventually come, no matter what path they take to get there.
The same is true for getting referrals. You don't have to worry about how a specific referral got to you because you understand the process of setting your net.
And the best part is your net can be working for you all the time. You don't have to be there whenever someone you know runs into someone else who could use your services--this means you can be "fishing" in many different ponds simultaneously and reaping tons of new business. This is especially true when you've become a referral gatekeeper and begin to get referrals not only from your own network of contacts but from the networks of others as well.
When it comes to networking, there is no coincidence about referrals. They are the inevitable cumulative result of the day-to-day activities of relationship-building. And even though those efforts can't be measured as easily as cold calls, the results are far more powerful.
Paula Frazier
Referral Marketing Expert & Master Trainer
Referral Institute
540-793-0622
http://referralinstitute-va.com/
"Helping people create Referrals For Life®"
Monday, September 20, 2010
Monday, August 30, 2010
It is YOUR Business
It IS Your Business "My business is my business" and there are many levels to think about your business - personal business, others' business and of course what I want to talk about is your business or your career because it is yours.
One of the beauties of owning a business is it is a reflection of your personality and what you value. If it isn't feeding your soul, then a makeover may be needed. Now, don't confuse a makeover with just changing your marketing materials - that is like "putting lipstick on a pig" as Charles Lummis said in 1926 - "it is still a pig!" A makeover is stripping your business down to its bare-bones, identifying your key markets, setting timely, results oriented goals and then making it happen.
Actually, this really sounds like a PLAN - Vision---Mission---Core Values---Goals---Projects - Your dream for Your business.
Many small businesses stay in the reactive world and end up living the life identified in the E-Myth as "they've created a job for themselves, not a business". You will hear them ask for help and follow it up with "I've tried that", "That will never work with my employees", "I can't do that", "I can't afford that", "That won't work." Well, guess what - they are right.
At any moment in time you can change the plot line of your business. Yes, it does take some work, maybe even some hard work, but you will be rewarded with the business of your dreams. Start with a plan and hold yourself accountable to meet those goals. If accountability is an issue, hire a coach or consultant - remember, even the best sports stars rely on coaches - it is a sign of growth!
Copyright 2010 Linda Lucas Fayerweather MBA EA
http://www.changinglanes.biz/
What are you doing right now to reach your goals?
Call Linda for getting your plan aligned with your dreams. 419-897-0528
linda@changinglanes.biz
One Page Business Planning Classes are forming - available from your desk! Oh, yes - coaching is included!
Want Stratospheric Succes? Learn the Five Laws.
Reading "The Go-Giver" over the weekend has solidified my belief that business as we’ve known it for the last two decades (or more, your mileage may vary) is so antiquated that to continue “as it’s always been” is maybe the most deadly thing you can do to your business. If your business has stagnated, if it’s slowed down to “just getting by”, or if you have serious concerns if you’ll be in business a year from now you can cheer up! Follow these “Five Laws of Stratospheric Success”.
The first Law, The Law of Value states; “Your true worth is determined by how much more you give in value that you take in payment”.
You may have heard the phrase giving value misused by the Internet Marketing Gurus telling you to give away your secrets to entice your prospects. This misses the mark in two ways. 1) As used here, giving does not mean giving away - as in free. It simply means to present something, in this case value. 2) value in this context means the relative worth or desirability of a thing to the end user. More to the point it's about asking yourself the question; “What can I offer that will set me apart – and I mean WAAAAY apart – from my competition and will allow people to want me as the person they choose to do business with?
Near and dear to my heart is appreciation. This is one of the things that cost little or nothing and leaves a lasting impression. Say please and thank you (and mean it). Send Nice to meet you notes - not emails - in a greeting card in your own handwriting. Remember birthdays and, you guessed, it send a card that says Happy Birthday! (If you don’t have a system for sending notes and greeting cards head over to my site and discover a great way to do it right from your computer)
Here’s a good place to mention one of the most important keys to making this law work, and it may be a deal breaker if you can’t commit to it, it’s that you have to give without any emotional attachment to the outcome. Now I know that’s going to sound really wacky to you but that’s how it works… because there is an outcome every time.
Visit Amazon.com and get the book. Take this journey with me and let me know how you give value to your product or service.
Copyright 2010 Todd Pillars helps business owners and sales professionals generate endless referrals easier and faster than they ever thought possible. Please contact him today at 419-855-2273 or email him at todd@toddpillars.com . You can also find out more information about his Endless Referrals workshops at http://www.burgintl.com/toddpillars .
One of the beauties of owning a business is it is a reflection of your personality and what you value. If it isn't feeding your soul, then a makeover may be needed. Now, don't confuse a makeover with just changing your marketing materials - that is like "putting lipstick on a pig" as Charles Lummis said in 1926 - "it is still a pig!" A makeover is stripping your business down to its bare-bones, identifying your key markets, setting timely, results oriented goals and then making it happen.
Actually, this really sounds like a PLAN - Vision---Mission---Core Values---Goals---Projects - Your dream for Your business.
Many small businesses stay in the reactive world and end up living the life identified in the E-Myth as "they've created a job for themselves, not a business". You will hear them ask for help and follow it up with "I've tried that", "That will never work with my employees", "I can't do that", "I can't afford that", "That won't work." Well, guess what - they are right.
At any moment in time you can change the plot line of your business. Yes, it does take some work, maybe even some hard work, but you will be rewarded with the business of your dreams. Start with a plan and hold yourself accountable to meet those goals. If accountability is an issue, hire a coach or consultant - remember, even the best sports stars rely on coaches - it is a sign of growth!
Copyright 2010 Linda Lucas Fayerweather MBA EA
http://www.changinglanes.biz/
What are you doing right now to reach your goals?
Call Linda for getting your plan aligned with your dreams. 419-897-0528
linda@changinglanes.biz
One Page Business Planning Classes are forming - available from your desk! Oh, yes - coaching is included!
Want Stratospheric Succes? Learn the Five Laws.
Reading "The Go-Giver" over the weekend has solidified my belief that business as we’ve known it for the last two decades (or more, your mileage may vary) is so antiquated that to continue “as it’s always been” is maybe the most deadly thing you can do to your business. If your business has stagnated, if it’s slowed down to “just getting by”, or if you have serious concerns if you’ll be in business a year from now you can cheer up! Follow these “Five Laws of Stratospheric Success”.
The first Law, The Law of Value states; “Your true worth is determined by how much more you give in value that you take in payment”.
You may have heard the phrase giving value misused by the Internet Marketing Gurus telling you to give away your secrets to entice your prospects. This misses the mark in two ways. 1) As used here, giving does not mean giving away - as in free. It simply means to present something, in this case value. 2) value in this context means the relative worth or desirability of a thing to the end user. More to the point it's about asking yourself the question; “What can I offer that will set me apart – and I mean WAAAAY apart – from my competition and will allow people to want me as the person they choose to do business with?
Near and dear to my heart is appreciation. This is one of the things that cost little or nothing and leaves a lasting impression. Say please and thank you (and mean it). Send Nice to meet you notes - not emails - in a greeting card in your own handwriting. Remember birthdays and, you guessed, it send a card that says Happy Birthday! (If you don’t have a system for sending notes and greeting cards head over to my site and discover a great way to do it right from your computer)
Here’s a good place to mention one of the most important keys to making this law work, and it may be a deal breaker if you can’t commit to it, it’s that you have to give without any emotional attachment to the outcome. Now I know that’s going to sound really wacky to you but that’s how it works… because there is an outcome every time.
Visit Amazon.com and get the book. Take this journey with me and let me know how you give value to your product or service.
Copyright 2010 Todd Pillars helps business owners and sales professionals generate endless referrals easier and faster than they ever thought possible. Please contact him today at 419-855-2273 or email him at todd@toddpillars.com . You can also find out more information about his Endless Referrals workshops at http://www.burgintl.com/toddpillars .
Monday, August 23, 2010
Proactive vs Reactive
Being Proactive in a Reactive World
Before we go any further - let me just say that reactive behavior is needed in life and it is a critical component to being a caring community. Responses to a natural disasters or a personal tragedies are part of society that makes us human. That being said, business pro-activity needs to be ever-present.
Back to Business. A common lament of business owners is:
"HOW do I move forward with a ___________ (new idea, plan, target market or just implementing a new customer service process)
WHEN I have ____________ (incomplete projects, uncooperative staff, no capital reserves, needy customers)".
After you fill in the blanks, I want you to take a few minutes to visualize change.
Imagine you are driving on a road that cuts through a mountain pass as you view the open-exposed rock layers of the mountains you know that these took eons to create - first was the layering of the different rocks - some volcanic and some sedimentary - then the metamorphosing with pressure that caused the waving and uplifting.
Now, come back from your travels and take a look at where your business has been. Look at the layering and metamorphosing that has happened over time. The slow steady progress of business is a key to business success. If you don't like where you are, have been, or are going, plan the steps to change. A great starting place is having a conversation with yourself about WHAT brings you energy and joy. This will give you a clue as to WHO you should be working with - in other words, your target market.
Changing the way we do business to bring us energy requires us to make regular proactive steps that change the face of our businesses. Yes, we will still have to be reactive, but working proactively on a regular basis will in itself lead to a change in our attitude. WHEN will you do it? Schedule some time daily right now! Really, right now.
Simple steps will make a difference.
Copyright 2010 Linda Fayerweather
Is what you are doing right now helping you achieve your goals? If not. . . stop doing that!
http://www.changinglanes.biz/
419-897-0528
Understanding Your Target Market
You already know how important your target market is to you business. Yet some of you may not be delving deeply enough into the research of your ideal customer. Case in point: Mommy Greenest*. You probably can assume that three-quarters of green moms are Gen Xers or Millennials and that 60% of them look for products and services that come from socially responsible companies.
HOWEVER, there are more details to this market that you should consider, like:
· 3 in 4 green moms have pets
· 1 in 4 is a homemaker
· 6 in 10 green moms are married
· They like new products - here's a breakdown of what they're looking for:
o 37.4% will try new products
o 58% buy store brands
o 47.2% buy name brands
o 50.7% use coupons.
· Their annual income is important too:
o 16.8% live on less than $25,000/year
o 41.6% from $25,000-$74,999
o 35.3% have an income of $75,000+
· Here's where they live:
o 34.6% in New England and Atlantic states
o 42.8% North and South Central US
o 8.8% Mountain states
o 13.8% Pacific states
So why is the depth of this information so important? Admit it; you were a little surprised that Green moms aren't living in the assumed "hot spots" of green activism like California and Colorado. I was surprised by this too. But isn't it nice to know that that the majority of these women are living in the central US, where things are a less hyped? This is good news for local businesses here in the Midwest. That means if you have a great idea of creating "green" products for pets, the idea should serve you well as 3 in 4 moms have pets.
A question does arrive on how to communicate with these green moms. Won't they be turned off by direct mail? Au contraire! If the direct mail is done right - been printed using environmentally friendly papers and inks - it'll be ok. Go the extra step by matching your message to your website where these moms can find more information about you. Don't deliver the thick huge brochure, instead direct them to the web where they can discern what needs to be printed themselves.
Delve deeply into your target market and you'll find all sorts of interesting facts that can help you with new product development or on how to better communicate with them. Remember your success starts with understanding your perfect consumer!
*Source: July 2010 Deliver Magazine.
Rebecca Booth
Marketing Goddess
Imagine That!
419.855.3399
Celebrating 13 years of delivering results for our clients.
http://www.rebeccaboothmarketinggoddess.com/
Before we go any further - let me just say that reactive behavior is needed in life and it is a critical component to being a caring community. Responses to a natural disasters or a personal tragedies are part of society that makes us human. That being said, business pro-activity needs to be ever-present.
Back to Business. A common lament of business owners is:
"HOW do I move forward with a ___________ (new idea, plan, target market or just implementing a new customer service process)
WHEN I have ____________ (incomplete projects, uncooperative staff, no capital reserves, needy customers)".
After you fill in the blanks, I want you to take a few minutes to visualize change.
Imagine you are driving on a road that cuts through a mountain pass as you view the open-exposed rock layers of the mountains you know that these took eons to create - first was the layering of the different rocks - some volcanic and some sedimentary - then the metamorphosing with pressure that caused the waving and uplifting.
Now, come back from your travels and take a look at where your business has been. Look at the layering and metamorphosing that has happened over time. The slow steady progress of business is a key to business success. If you don't like where you are, have been, or are going, plan the steps to change. A great starting place is having a conversation with yourself about WHAT brings you energy and joy. This will give you a clue as to WHO you should be working with - in other words, your target market.
Changing the way we do business to bring us energy requires us to make regular proactive steps that change the face of our businesses. Yes, we will still have to be reactive, but working proactively on a regular basis will in itself lead to a change in our attitude. WHEN will you do it? Schedule some time daily right now! Really, right now.
Simple steps will make a difference.
Copyright 2010 Linda Fayerweather
Is what you are doing right now helping you achieve your goals? If not. . . stop doing that!
http://www.changinglanes.biz/
419-897-0528
Understanding Your Target Market
You already know how important your target market is to you business. Yet some of you may not be delving deeply enough into the research of your ideal customer. Case in point: Mommy Greenest*. You probably can assume that three-quarters of green moms are Gen Xers or Millennials and that 60% of them look for products and services that come from socially responsible companies.
HOWEVER, there are more details to this market that you should consider, like:
· 3 in 4 green moms have pets
· 1 in 4 is a homemaker
· 6 in 10 green moms are married
· They like new products - here's a breakdown of what they're looking for:
o 37.4% will try new products
o 58% buy store brands
o 47.2% buy name brands
o 50.7% use coupons.
· Their annual income is important too:
o 16.8% live on less than $25,000/year
o 41.6% from $25,000-$74,999
o 35.3% have an income of $75,000+
· Here's where they live:
o 34.6% in New England and Atlantic states
o 42.8% North and South Central US
o 8.8% Mountain states
o 13.8% Pacific states
So why is the depth of this information so important? Admit it; you were a little surprised that Green moms aren't living in the assumed "hot spots" of green activism like California and Colorado. I was surprised by this too. But isn't it nice to know that that the majority of these women are living in the central US, where things are a less hyped? This is good news for local businesses here in the Midwest. That means if you have a great idea of creating "green" products for pets, the idea should serve you well as 3 in 4 moms have pets.
A question does arrive on how to communicate with these green moms. Won't they be turned off by direct mail? Au contraire! If the direct mail is done right - been printed using environmentally friendly papers and inks - it'll be ok. Go the extra step by matching your message to your website where these moms can find more information about you. Don't deliver the thick huge brochure, instead direct them to the web where they can discern what needs to be printed themselves.
Delve deeply into your target market and you'll find all sorts of interesting facts that can help you with new product development or on how to better communicate with them. Remember your success starts with understanding your perfect consumer!
*Source: July 2010 Deliver Magazine.
Rebecca Booth
Marketing Goddess
Imagine That!
419.855.3399
Celebrating 13 years of delivering results for our clients.
http://www.rebeccaboothmarketinggoddess.com/
Wednesday, August 18, 2010
Accountability
What Works - What Doesn't
When it comes to getting more work done, sometimes I hear these questions and I'm embarrassed to say that occassionally I even think some of these questions.
--Who dropped the ball?
--When will I be appreciated?
--Why is this happening to me?
--Why do we have to go through all this change?
--Who left the peanut butter out?
According to John Miller, author of QBQ: Question behind the Question, practicing Personal Accountability these are all questions that indicate the organization in question is not using personal accountability as a core value in their culture.
Let's just talk about the dropped ball. This is part of the blame game and as a manager, the first response is to make sure the job was clearly assigned.
--If I'm asking "who dropped the ball", I'm going to review if I did a good job of delegating. Why? Because, if I had, I'd know who dropped the ball, dealt with that individual and gotten the project back on track. (Note: sometimes a ball dropper is in the wrong position or maybe even on wrong team - that is the job of a manager to assess and correct.)
--If I am part of a team and I dropped the ball - let's hope I have a team member that values the project and intercedes and asks the question "How can I help?" or "What can I do to help get this back on track?"
--If I am on a team that someone has dropped the ball, my personal accountably should do two things.
1. Asking the responsible person "How or What can I do to get this back on track?" or
2. If it is critical or urgent - doing what needs to be done and then seeking to correct the problem.
When Japanese manufacturers in the 1950s started allowing any assembly worker to stop the assembly line for a correction, the process was corrected and the team members were seen as being personally accountable ultimately to the customer. This was not a negative but a positive response to quality.
Making personal accountability part of your culture is a way to maximize the possibilities of your business. Staying out of the "Blame Game" will be key.
Copyright 2010 Linda Fayerweather
Is what you are doing right now helping you achieve your goals? If not. . . stop doing that!
http://www.changinglanes.biz/
419-897-0528
Conscious Entrepreneurs are Accountable
Many people cringe at the mere mention of the word accountability. They conjure up images of being judged, coming up short, and then having to bear the consequences of failing to perform as expected. However, that's not the purpose of accountability when thought of in the context of conscious entrepreneurship.
Instead, accountability can be a cornerstone for improving overall personal and business performance by developing and promoting change within a culture that embraces continuous growth. For conscious entrepreneurs, accountability is a value that is more about awareness of what needs to change or what is working or not working, than it is about judgment.
Stephen Covey had it right when he said "Accountability breeds response-ability." When you hold yourself accountable to take certain actions, for example to make 5 appointments a day, you can review your activity, at the end of the day, as part of your accountability process and with this knowledge, you can respond. If you didn't make the 5 appointments, you can analyze your activity to see how to improve, you might decide that a goal of 5 a day is too many or perhaps there's something you could tweak in your approach, etc. If you don't hold yourself accountable, you will miss the insights that you gather through your daily accountability analysis and also miss opportunities to grow and change.
Incorporate accountability into your life by choosing two or three small new behaviors that will enhance your life or business and at the end of the day, face the truth. Did you take the new actions? If not, why? If yes, celebrate! What can you learn from the process?
"It is not only what we do, but also what we do not do, for which we are accountable."- Moliere
Copyright 2010 Pat Altvater
Transforming Bodies and Minds
http://www.outsmartweight.com/
http://www.momsoutsmartingobesity.com/
http://www.choosesuccessbook.com/
419-344-6613
When it comes to getting more work done, sometimes I hear these questions and I'm embarrassed to say that occassionally I even think some of these questions.
--Who dropped the ball?
--When will I be appreciated?
--Why is this happening to me?
--Why do we have to go through all this change?
--Who left the peanut butter out?
According to John Miller, author of QBQ: Question behind the Question, practicing Personal Accountability these are all questions that indicate the organization in question is not using personal accountability as a core value in their culture.
Let's just talk about the dropped ball. This is part of the blame game and as a manager, the first response is to make sure the job was clearly assigned.
--If I'm asking "who dropped the ball", I'm going to review if I did a good job of delegating. Why? Because, if I had, I'd know who dropped the ball, dealt with that individual and gotten the project back on track. (Note: sometimes a ball dropper is in the wrong position or maybe even on wrong team - that is the job of a manager to assess and correct.)
--If I am part of a team and I dropped the ball - let's hope I have a team member that values the project and intercedes and asks the question "How can I help?" or "What can I do to help get this back on track?"
--If I am on a team that someone has dropped the ball, my personal accountably should do two things.
1. Asking the responsible person "How or What can I do to get this back on track?" or
2. If it is critical or urgent - doing what needs to be done and then seeking to correct the problem.
When Japanese manufacturers in the 1950s started allowing any assembly worker to stop the assembly line for a correction, the process was corrected and the team members were seen as being personally accountable ultimately to the customer. This was not a negative but a positive response to quality.
Making personal accountability part of your culture is a way to maximize the possibilities of your business. Staying out of the "Blame Game" will be key.
Copyright 2010 Linda Fayerweather
Is what you are doing right now helping you achieve your goals? If not. . . stop doing that!
http://www.changinglanes.biz/
419-897-0528
Conscious Entrepreneurs are Accountable
Many people cringe at the mere mention of the word accountability. They conjure up images of being judged, coming up short, and then having to bear the consequences of failing to perform as expected. However, that's not the purpose of accountability when thought of in the context of conscious entrepreneurship.
Instead, accountability can be a cornerstone for improving overall personal and business performance by developing and promoting change within a culture that embraces continuous growth. For conscious entrepreneurs, accountability is a value that is more about awareness of what needs to change or what is working or not working, than it is about judgment.
Stephen Covey had it right when he said "Accountability breeds response-ability." When you hold yourself accountable to take certain actions, for example to make 5 appointments a day, you can review your activity, at the end of the day, as part of your accountability process and with this knowledge, you can respond. If you didn't make the 5 appointments, you can analyze your activity to see how to improve, you might decide that a goal of 5 a day is too many or perhaps there's something you could tweak in your approach, etc. If you don't hold yourself accountable, you will miss the insights that you gather through your daily accountability analysis and also miss opportunities to grow and change.
Incorporate accountability into your life by choosing two or three small new behaviors that will enhance your life or business and at the end of the day, face the truth. Did you take the new actions? If not, why? If yes, celebrate! What can you learn from the process?
"It is not only what we do, but also what we do not do, for which we are accountable."- Moliere
Copyright 2010 Pat Altvater
Transforming Bodies and Minds
http://www.outsmartweight.com/
http://www.momsoutsmartingobesity.com/
http://www.choosesuccessbook.com/
419-344-6613
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