small business gurus - the blog of Cat & Keith Matson

by Cat Matson

In the current economic climate a lot of business owners are discounting their prices in an attempt to get customers.  This strategy is fuelled by the notion that there is ‘no money’ being spent.  Actually, the money is still moving.... it’s just that consumers are being more conscious about how they spend it.

The problem with discounting is that you actually have to get even more work than you did before to make up for the discounted prices.  Further, your customers will likely resist your normal price in the future – so you are either stuck with the discounted price or you potentially lose the customer.

So instead of discounting, how can you increase the value in your service or product packages so that people are more likely to spend their dollar with you instead of your competitor?

A business coach I know is offering a 6-month Mentoring Program.  In essence it is 6 months of coaching, charged at his normal monthly coaching fees.  But he has packaged in a range of ‘additional’ benefits (such as unlimited email contact, discounts off his other programs and products, worksheets and other tools) that cost him very little to deliver, yet offer significant value to his clients. 
How could you use this approach?

• If you’re a plumber or electrician, with any call-out you could offer a ‘free’ check of your customer’s set-up to ensure maximum water/electicity efficiency and safety.
• If you’re in retail you could offer a gift voucher with any purchase over a certain dollar amount.  Not only does this increase the value of the original purchase but it gets the customer back in your shop.
• If you’re in hospitality, you could offer free coffees with a meal (or similar), or a free salad with the main meal.

All of these ‘inclusions’ cost you very little to deliver, yet add significant value to the customer. 
So don’t discount, increase your value to the customer.

(Not sure how to package up value for your business? Email me and I’ll give you some ideas.)

Cat

Igniting your business performance

Alito - Business Mentors

by Cat Matson

Feeling a bit unmotivated?  Directionless?  Not sure what to do next?

Well, I've just discovered a solution.  Action!

Do something, anything.  That 'anything' in itself creates its own momentum and then you don't need to be 'motivated'... you just have to keep doing 'the next thing'.

So stop looking for the 'right' thing to do, and just do something.

:-)

Have fun!

Cat

Igniting your business performance

Alito - Business Mentors