Pricing custom work well is a strategic advantage

How good is your business at pricing custom work? If you don’t have a way of pricing custom work that consistently accounts for your costs and labor, how do you know if you’re making any profit on these deals? How would it feel to find that you’re losing money on half your custom work? Do […]

Win on low price, lose on low price

Do you depend on having the best price to win business? If so, are you sure that’s really how you want people to choose your company? I ask that because if you cut your price 10%, that 10% comes out of your profit margin. Perhaps obvious, but not always something folks pay attention to – […]

All else is seldom equal

photo credit: Luz Adriana Villa A. A question came in earlier this month… “How do I compete with businesses that can offer similar products/services at a lower cost?” The question is “Why are you depending on price to close your sales?” It’s important to examine because *so many* people focus on it. In a weak […]

Paper. Ink. Electrons. Winston Churchill. Charles Manson.

photo credit: kekremsi Recently, the New York Times published a story about changing prices for books in print and how those prices compare to prices for electronic books. In particular, the story focused on comparison pricing occurring at Amazon.com for books published both in paperback and for the Kindle, a very popular eBook reader manufactured […]

Does it make you squirm?

photo credit: ToastyKen The oft-referenced-here Cialdini work “Influence” speaks in volume via today’s guest post from Rob’s IM Reports. While the guest post’s video is intended to be funny, it does a nice job of illustrating a situation most of us have faced at one time or another. You might also have created some of […]

The power of measurement

photo credit: BruceTurner Despite Chris’ assertion that information wants to be free, some of it just isn’t. Sorry. In fact, some information is worth far more than the paper it is printed on (or the pixels it lights up). For example, imagine that your company publishes technical articles. Short, sweet, fine-tuned to a specific purpose […]

Selling the unsellable

photo credit: striatic Adelaide, a Charlotte ticket agent with Delta Airlines, had undoubtedly heard similar passenger comments hundreds if not thousands of times. “$15 a bag and $40 for two? What’s with that?” She handled it well, including laughing at the ( joking) speculation by other passengers that all the luggage fees go to her […]

What Market Price Really Means

photo credit: Rob Shenk Think hard about using market price to arrive at pricing for your products and services. Wikipedia has their thoughts about it, but quality, reputation, delivery ability and related issues aren’t really part of their discussion. I’d simplify that to define market price as “The price that a typical salesperson can get […]

Ryan Air cant even afford to flush?

photo credit: _sarchi So you’re probably sick of me talking about the fact that basing the success of your business solely on the ability to beat everyone else’s price is a mistake. Some would hold out Wal-Mart as an example that I’m dead wrong. Rhetorical question for those people: How many businesses *other than WalMart* […]

Stampedes and shootings: Just another Black Friday

It’s hard to imagine why big national retailers continue to play the fools game, thinking that by discounting their prices 40-50% or more they’ll increase their profit. Perhaps they think they’ll make it up on volume. When you cut prices, the first thing that you give up is a piece (or all) of your profit. […]