The Price is Right
Here Joanne Stevens from Business Growth Academy shares a top tip to helping you grow your business and a pet hate when it comes to people setting their prices.
One of the most powerful exercise we do on our introductory workshop is to look at what you want your business to do for you and work out what your price needs to be based on this. It’s the biggest AH-HA moment for so many. And I cannot help but be frustrated when I see so many people set prices by looking at what their competitors charge, then knock a bit off!
Virgin takes a tried and tested product or service, finds out how to do it better than anyone else then works out what the price point needs to be to make this work for the company. Take Virgin Airlines – they select only certain routes, they negotiate good contracts with the airports and then they stamp their brand all over it, advertising to their target market in the right way. Far more focussed than a budget airline selling tickets low cost to anyone that will put up with a less than satisfying experience.
So how do Virgin charge a price that suits them rather than the price their competitors dictate?
- First they know their ideal customer inside out. They know what appeals to them, set their expectations and over perform every time (well enough times to have a built a great reputation).
- They offer alternatives – economy, premium and first class. Most people will go for economy but they have enough choice to satisfy everyone in their target audience.
- They up sell – even to those buying economy they give the customer plenty of opportunity to upgrade if they want to. They use discounts and other incentives to make this look really attractive.
- They deliver on their promises and ensure they provide a great customer experience.
- They follow up – using loyalty cards and relevant offers that match the customer experience.
To apply this to your business and ensure you are in control of your business rather than it controlling you:
- Work out what you need to earn to fund your lifestyle – pre tax. Look at how many hours you want to earn and price your service or product to match these 2.
- Based on where you are pricing yourself, decide who is your ideal client and work out what the benefits are TO THEM of you product or service
- Get these benefits in front of them in the right way – making sure your promotion matches their profile
- Convert them into paying customers. Engage them in conversation, give them the opportunity to buy and when they show they want to make it easy for them to do so.
- Deliver on the products or services at a level that exceeds expectation
- Follow up – for another le, a recommendation, or just simply a thank you. Show your customers you appreciate them too.
To explore this and other ideas to grow and control your business join me at my last Free workshop on Saturday 26th March – for full details and to book click here: How to hit your100000 fast – not Turnover, Profit
Jo attends our North Essex events. You can learn more about Jo and here business here;
TEL: 08456 788 825
