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While low price will usually generate sales volume, unless you can figure out how to decrease unit cost at the same time, you lose margin and, (trumpets blaring here) the customers you gain on low price will often defect when a competitor offers an even better (and lower) price. If you want to retain your customers you might be better off promoting “Added Value”
Satisfaction instead of lowest price dominates retention and in fact, value-added products or services often command a higher price that customers are willing to pay. Use the following examples as idea stimulators to increase the value equation for your business.
Add Value with “No Cost Extra Service”: The car was in the garage for minor repair. When picking up the car, the customer was happily surprised to find the carpets had been vacuumed at no charge. There was a business card attached to the steering wheel that stated, “We always vacuum the interior as part of our extra-value service.” The garage put a smile on the customer’s face with almost no added cost by vacuuming the carpets.
Add Value with Speed: Clothing altered in one day… Same day shipping… Five-minute loan application… Eyeglasses in one-hour. Call when you are ready to leave and your order will be ready when you arrive.
Add Value with Follow-through: Your furnace was just repaired and the company adds value by phoning to make sure the work was completed properly.
Add Value with Communication: Send “Helpful Hints” on product use… create a newsletter… congratulate customers on product anniversaries (Wow! Your refrigerator is ten years old!). The florist reminds you of your mother’s birthday – why would you go anywhere else?
Add Value with Ambience: Fresh flowers in reception area… Spotless Washrooms… Appropriate Music… Creative and Attractive Packaging… An after-dinner mint graciously given (instead of throw in a “grab-bowl.”
Added Value with Extra Information – They bought a piece of equipment and you email them tips or additional uses or creative ways to enjoy their purchase once a month for years (it’s OK to repeat them just not too often).
There is no end to the list of tactics to add value. This week I challenge you and your staff to create a list of ten tactics you could employ, choose the best, and implement it.
The easy and lazy to way to promote is to slash prices. It’s far better to win them with added value – they will be happy to buy from you if they feel they have gotten more for their money.
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Before I started my web development business, I bethink calling a web artist because I bare a website done for my ancillary hustle. I told him that I was searching for a simple four or 5 page website, annihilation fancy, and that I was amid in Maryland. He again asked me what my account was. I didn’t apperceive a affair about the industry and what was an “appropriate price” so I told him to accord me an estimate. I’m academic that he anticipation he could try to bake my pockets because of my ignorance, so he quoted me an appraisal of $5000. Let’s just say that he did not architecture my website. Or annihilation abroad for that matter.
I capital to address this commodity for the business owners and freelancers out there who wish to accommodate their audience with honest estimates for their plan and services. Acceptable for you! There are abounding con artists out there who may betray a few barter into paying sky top prices for basal services. It will not be continued afore their doors close: for good. These tips will advice you plan with your applicant to accommodate the best appraisement for your superior work, and for their wallets.
1. What is your budget?
This catechism is one of the single, a lot of important questions if free a price. Not alone will this catechism acknowledge how abundant money they are dedicating to your project, it can bound authorize or disqualify them for your services. My eyes pop out of my arch if businesses wish an eCommerce website done for as little as $350. To all the business owners out there, you will not get superior plan for that amount (glad I got that off my chest!).
2. Where are you located?
You accept apparently heard the adage “Location is everything.” It is. The area of a business can announce their acquirement and a lot of importantly, their budget. A crafts abundance amid in New York City will apparently do added business than a crafts abundance in Butte, Montana.
3. How bound are you searching to yield your website live?
This catechism reveals their faculty of urgency. For businesses on a bound deadline, you may wish to accession your amount for the added hours of adherence to their project.
4. What is your industry?
A business’ industry can acquaint you how abundant they can pay for your work, as able-bodied as how abundant they are searching to pay! Professional industries may charge pages to explain their services, a page for scheduling their clients, a member’s log in, etc. Depending on the industry, you may wish to upsell your applicant on added casework that will accord them a added aggressive edge.
5. How abounding years accept you been in business?
The best the applicant has been in business, the bigger their budget. A business that’s been about for over 25 years has added account and casework than a startup.
Ask these questions the next time you are alive with a abeyant client. A lot of importantly, accept to them! Find out what their needs are and what they are searching to accomplish. Be empathetic, action suggestions, and don’t yield no for an answer. Go get em, tiger!
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Menu appraisement is one of the a lot of important decisions for any restauranteur. It may attending easy, but the actuality is that you cannot bulk it artlessly by your intuition. It requires consideration, ascertainment and allurement assertive questions. For instance, do you bethink your endure appointment to a bazaar or a capital as a buyer? How abounding appurtenances had an adequate bulk adorable abundant to actuate you to accomplish a purchase? In reality, appraisement have to be an bulk that anyone abroad is accessible to pay for your annual or product.
Creating a restaurant card is catchy business. Not alone does it absorb selecting adorable and accepted dishes, but aswell appraisement them competitively. Appraisement is important not alone to accomplish the business profitable, but aswell to action acceptable amount to barter to win them over.
Tips on Appraisement the Aliment Items
Let’s see how to bulk the aliment items on the menu:
* Generally, acknowledged restaurants accumulate the aliment costs in the ambit of 27 to 32% of aliment sales. These percentages can be college or lower depending aloft the blazon of restaurant. However, to be added accurate, it’s best to analyze your amount allotment with restaurants accepting agnate airheaded and services.
* While artful the amount of food, all capacity have to be included. Work out the amount of anniversary compound for anniversary card annual and don’t overlook to cover things, like spices and garnishes in the cost.
* Your compound costs for items and sales prices will actuate whether your aliment amount is in band with the industry averages. This will aswell advice in ecology your achievement and allegory problems and trends.
* Ideally you should be able to actuate a constant all-embracing aliment amount which, if accumulated with able pricing, will absolutely appulse on your profitability.
* It’s aswell important to bethink there are added costs of operating a restaurant that charge to be taken into annual to actuate optimal appraisement for card items. These cover the amount of labor, hire and debt.
Tips on Appraisement Alcoholic Beverages
Now, let’s see how to bulk the alcoholic beverages on the menu:
* Cooler costs are generated in the mid-20% ambit of cooler sales. As for food, these can be college or lower. Fine dining establishments may run up to 40%. On the added hand, restaurants confined abstract beer may run as low as a 15% cooler cost. So, it’s important to acquisition out the industry averages by comparing your amount allotment to restaurants with agnate airheaded and annual levels.
* Cooler costs, like aliment costs, have to be consistently monitored, by comparing with antecedent performance, with added restaurants and the industry averages. This will advice you to competitively bulk the items and access advantage of your absolute operation.
* Although you’ll charge to baby for accustomed taxes, you have to be bright about added taxes in your bounded jurisdiction, as they may appulse cooler pricing. In Philadelphia, for instance, there is an added cooler tax of 10%.
If you yield the aloft factors into annual while appraisement the items on your menu, you’ll absolutely accomplish in active a assisting restaurant.
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As a Realtor, one of our bigger frustrations is ambidextrous with the unrealistic expectations of a seller. Sellers are belled for overpricing their homes. The bazaar is saturated with bags of backdrop that will never advertise afterwards a bulk adjustment. Abridgement of commensurable sales, poor or no Realtor representation, assertive improvements are account added than they absolutely are, no ability of the absolute acreage market, blank accustomed competition, defective a assertive sales bulk based on claimed costs and not blockage on top of the accustomed bazaar altitude are a few affidavit sellers overprice their homes.
What is bazaar value? International Appraisement Standards defines bazaar bulk as “the estimated bulk for which a acreage should barter on the date of appraisement amid a accommodating client and a accommodating agent in an arms-length transaction afterwards able business wherein the parties had anniversary acted knowledgeably, prudently, and afterwards compulsion.”
What bazaar bulk is not
It is not the bulk you paid for the home additional improvements and absolute acreage commissions.
It is not how abundant your friend, in-laws, attorney, accountant, sister with a absolute acreage license, acquaintance or anyone abroad thinks your abode is account unless they are accommodating to buy it at that bulk and you are accommodating to advertise it at that price.
It isn’t what you paid for the home additional a bare or actual amount of appreciation.
It isn’t added than what your neighbor’s abode awash for because you like your abode better.
I acquire affinity for today’s agent back I afresh awash a brace of rental backdrop that I owned. They bankrupt in the third division of 2008 and awash for about 60% of the bulk that I could acquire awash them for in the bazaar highs of 2005. So I apperceive what it feels brand to lose equity. It is an animal absoluteness of the bazaar we are in. Here are some things I kept in apperception if I was establishing my allurement prices.
1. Be objective
Yes, you are affairs your home and all of the abundant memories and adventures that you acquire had but try to be as cold as you can. Don’t agency those abundant memories into the bulk tag of your home. Buyers are added anxious with location, quality, admeasurement and condition.
2. Overlook about what your home acclimated to be worth
Like the banal market, the absolute acreage bazaar changes daily. Homes sell, expire and new antagonism comes on the market. Absolute acreage prices don’t move as bound as banal prices but nonetheless the bazaar does change. I am autograph this in November of 2008 and just about everyone’s home was account added three years ago. Concentrate on what your acreage is account today and what it will be account in the next six months, not endure ages or endure year.
3. Don’t plan on award a sucker
Many humans achievement that their Realtor can acquisition that one accoutrement who is accommodating to pay added for their home than it is absolutely worth. Does it happen? It abiding does. Does it appear generally abundant for you to await on? No.
4. What will your home be account in the future?
This is a actual important catechism back we are in a down trending market. I acquire apparent so abounding humans adios offers on their home alone to acquire abundant lower offers after because the bulk of their acreage declined. One of the rental townhouses that I awash bankrupt for $175,000. Three years ago an about identical assemblage bankrupt for $310,000. Part of the action to advertise it was because I anticipation that there is a appealing acceptable adventitious that it will advertise for about $150,000 in the not too abroad future. I had a home listed for $1,200,000. We accustomed an action for $1,000,000 which I anticipation was bazaar bulk and explained that to the seller. She alone the action and the buyers absolved away. About a year after she accustomed an action of $825,000. If you anticipate home prices are traveling to abatement further, bulk your home competitively from day one.
5. Assay the bazaar thoroughly
This is area a acceptable Realtor can appear in handy. I’ve formed forth ancillary some agents who put about 5 account account of plan into accession at an allurement price. In some cases that may plan but a lot of of the time it doesn’t. Attending at the backdrop currently on the market, beneath contract, afresh awash and expired. Abounding humans overlook to attending at the asleep listings. These are acceptable to assay to see what went amiss so you don’t accomplish the aforementioned mistakes. How does your home analyze with the afresh awash properties? Again, accomplish abiding you are accepting objective.
6. Added business does not absolve overpricing
I do accept that acceptable business is important in a bad market. You acquire to differentiate yourself from the bags of added backdrop for sale. However, that does not beggarly that bags of book advertising, an accessible abode every Sunday and bags of Just Listed cards are traveling to advertise an cher home. Abundant business may get a client in the aperture but that aforementioned client will attending at your antagonism as well. Heavily commercial an cher home may alone advice advertise your appropriately priced competitor.
7. Accumulate appraisals in mind
You don’t wish to go through the altercation of an offer, negotiations, inspections and packing your accouterments alone to acquisition out that your home did not adjudge for the sales bulk and the accord is off. In a absolute apple you can acquisition three afresh awash agnate homes. Do your appointment and authorize an allurement bulk based off of these three sales. Lending and appraisement guidelines acquire afflicted dramatically. Lenders are searching at appraisals carefully so don’t amount on affairs your home for a bulk that an adjudicator cannot justify.
8. Get advanced of the market
In a bound affective bazaar you may charge to accomplish an acclimation based on bazaar conditions. If the bazaar was hot in 2004 and 2005 a lot of sellers were demography the endure auction and abacus 5-10% to that bulk and authoritative that their allurement price. And, it was working. Now, the adverse may be needed. Back the bazaar is affective bound to the downside you may charge to yield the endure sales bulk and accomplish your allurement bulk that or 5-10% lower.
9. Be the best deal
This is not rocket science. Buyers artlessly wish to buy the best abode at the best price. Apperceive your antagonism actual well. Go with your Realtor and appointment agnate homes that you are in antagonism with. Once you see those backdrop it is easier to actualize value. In a down bazaar you acquire to actualize a faculty of bulk for buyers. They are so afraid about prices falling added that they artlessly will not buy unless they feel that they are accepting value.
10. Be able to lower your price
You may not get the actual allurement bulk from day one. Sometimes it is difficult because of the bazaar or abridgement of commensurable sales. The antecedent allurement bulk is just a starting point. Do not lock that amount in your head. Accomplish abiding you lower your bulk afore your abode gets stale. If your home has been on the bazaar too continued abounding Realtors will stop assuming it because they amount that you are not a astute seller. Are we in a boxy market? Absolutely. Abounding of us acquire never apparent a bazaar like this before. Some Sarasota absolute acreage prices acquire apparent declines in the adjacency of 50%. It is not a time for sellers to be adamant about pricing. Buyers are active this bazaar appropriate now. If you are cerebration about affairs your home in a bad absolute acreage bazaar accumulate these tips in apperception if establishing your allurement price. You can acquire all of the business in the apple but if you are allurement too abundant for your home it a lot of acceptable will not sell.