Thursday, December 15, 2011

Why Pricing is Hassle-free When You Have a Home business Method

Be realistic and honest with yourself, if your business idea does not seem to be in demand think of another plan. If there are numerous businesses all offering the same service/product then what makes yours so different?

Ask yourself if people will part with their hard earned cash for your service/product as without money coming into the business you will not stay in business long. If you are planning on opening a guesthouse for instance then it will not work if you do not like people very much!

So You Want to Start a Business?


Having a firm grasp of your business strategy makes it clear if your product or service is considered premium compared to those that are similar, or if it's a price leader (low cost as a result of internal process efficiency, NOT discounting, which is an unsustainable business practice).; Your business strategy makes it clear how and why your product or service is different, better, or cheaper.; Having this information allows you to provide your customers reasons and evidence for why your pricing is as such.; For example, you would not discount a premium product or service without first removing some value from your offer.; Alternatively if you are an industry price leader in a general market you may provide significant volume discounts, because that's what price sensitive customers would expect.; And here is another important piece of a business strategy: Knowing who your customers are, or should be.; In other words, knowing your target market.

Knowing your customers and target market will help you significantly in developing a solid pricing strategy.; It is very important that this part of the business strategy is also communicated to and understood by everyone in the organization, from senior executives, to sales, marketing, customer service, operations, and so on to ensure consistency in your message to your intended target market - and pricing is part of that message.; Knowing the business strategy empowers salespeople to make pricing decisions on their own, significantly reducing the time spent discussing pricing in meetings and therefore increasing efficiency in the sales department.

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