Become Reassuringly Expensive

by Dr Greg Chapman

When someone is enquiring about your services for the first time, they may ask “How much do you charge?” But if you tell them, the focus is just on price.

A buying decision is generally an evaluation of the Value/Price ratio, often expressed as Return on Investment. However, for many services, the return is an intangible.

How much more beautiful will a beauty product make you look? And what is that worth?

If you start with value and ensure that the buyer fully understands the benefit they will receive, even if it is intangible, that is where their focus will be even after you reveal the price.

But, what about your competition?  More...
 

Calculating the Risks for Small Business Success

by Dr Greg Chapman

Business is all about confidence. Confidence that the risks you must take will have a high chance of success. The reason this is essential is that you must provide all the resources (time and money) to make the strategy succeed. Too often, businesses are timid with their actions, and are looking for a 2-way bet.

More tightrope walkers fall while using a net than those that don’t.

Discount Price Wars

by Dr Greg Chapman

When competition is stiff or times are tough, and businesses experience a slump in sales, the natural response of business owners is to reduce their prices. In response to this, they find their competition starts to do the same, and before you know it, you are in a price war.

Price wars are like trench warfare. You may gain a few meters in territory here, whilst the other side gains a few meters from you around your flank. And both sides incur large losses. In this type of battle, it is a war of attrition, and the last person standing wins while bleeding red ink. They also inherit a decimated market landscape with their buyers educated to expect discounts.

A number of negative impacts occur to your business when you discount. The most obvious one is the loss in margin, which you hope to make up with increased sales. In most cases, this does not happen.

Ad of the Month – Over the Top

by Dr Greg Chapman

We often hear that less is more, but done correctly, more can be even MORE! There is no subtlety in this ad, with a well known star, Sean Bean, better known for storming the ramparts, who has somehow been seconded to the human resources department to train new recruits.

The theme here is that this company’s commitment to doing things the right way WILL NOT BE COMPROMISED.

Increase Your Prices by Packaging Value

by Dr Greg Chapman

In any buying decision, this is question that must be answered by the buyer: “Is the product or service worth it?” Or more generally, is the offer made by the seller is equal to the dollars that they are asking for it.

Let’s take a simple example, water. If you wanted a drink of water, and you went to a pub, and they served you water from a tap, what would you expect to pay? It would probably be free. If you went to a kiosk, you could buy bottled ‘mineral water’ in a basic plastic bottle, and it might be $2-3.

If you were at a boutique restaurant, you might be able to get water from the Greenland icecap, presented in a special designer bottle with a stunning label, a bottle that you would like to take home as a souvenir. It might cost you $87.