How small business’ can raise prices without alienating clients

Most small business owners often underbid their services to better attract sales.  Once established, they take too long to raise their prices.  The fear is that they will lose their current client base, and therefore lose money.  How can small businesses raise prices without alienating or losing clients.
Some of the more effective methods for small business’ to raise prices without alienating are:

1) Announce price raise well in advance, as well as the reason for new rates.  Include additional benefits to them that you are being added in your descriptions.  You can also offer a “lite” version at the original price – so not to loose any clients

2) Offer “Grandfathering-in” at original price for a limited time.  Anyone purchasing the service before that date will get it at the original price.  Offer a loyalty program such that clients that continue with you (either via a retainer, or subscription membership) will remain at the original price for 1-year.  Any break in service will revert to new price.  Any new clients entering after XXX date will pay the new higher rate.  This entices ‘on the fence’ customers some incentive to purchase ‘now’.

3) Offer a Club Membership Subscription – such that a reasonable membership fee will guarantee the original price as long as they are members in good-standing.

4) Offer a referral program that allows the customer to get compensated for bringing in new-paying clients.  Anyone bringing in new paying customers  get the original rate as well as the new customer.

5) Offer an advertising program that allows customers with their own facebook social media,  newsletters, blogs and websites receive the product/service at the original price.  Create a contract that requires the client to advertise XX times a quarter on their various social media wall, newsletters, blogs, and websites.  As long as they fulfill the advertisement contract, they pay the original rate.

Remember the goal of “price increases”:  You are increasing your rate to make more money.  If you can make more money doing other things, then you have been fairly compensated.  If you can reduce marketing costs or other overheads (allowing the customer to help with those tasks), then you can afford to compensate the client by giving them the original rate.

Giving the client options to stay at the original rate often eliminates the alienation feeling.  This way, the client is the one selecting the price they are willing to pay.

Create a campaign and marketing plan around your strategies. Use it as a catalyst event.

1) Make your “price change” announcement at least 3 months advance to encourage new clients to purchase at the lower prices.

2) Roll-out your loyalty programs and referral programs at least 2 month’s in advance.

3) Call (or visit) your high-influential, high volume  clients to discuss the price changes, the reason for them, the grandfather/membership plans, etc.  Allow your clients to choose how they want to participate.  This also allows you to give them a free membership or subscription to lock them into the lower rate.

4) One week before price change, remind folks that some of the discount offers will expire on the rate-change date.

5) Do a count-down a day before the event.  Make the price change an actual event.

How to attract the clients mostlikely to pay your price for your products and services

How can small companies  reach the types of customers most likely to be willing to pay their  prices for their products and or services.
Individuals normally hang-out with folks that  are within 20% of their own salary range.  If we want to improve  our social-economic standing, we need to associate with the same income level  that we want to achieve.
We can use this knowledge in attracting the clients  that you want. 
1) Be clear and explicit in your target client  description.
    Include in your description: 
  • yearly income
  • type of neighborhoods they live
  • the size and price of the homes that they would   typically live in
  • types of hobbies
  • types of charity events
  • type of cars, boats, premier   service they use
  • type of transportation that they normally   use
  • type of events and meetings they attend
  • type of restaurants, parks, activities that they   take advantage of
  • type of magazines that they normally subscribe   
2) Then start networking and showing up at the same  places.
  • Volunteer at the charity events that   your target clients normally attend.  Pick a position that allows you to   connect and interact with your target client.  Don’t accept a position   that keeps you in the background. Since you are volunteering your   time,make sure that the ROI is to your advantage.
  • Become the program committee chairman at some of   the associations and events that they atend.  Being the program chairman   of these types of associations gives you an easy ice-breaker.  You can   then invite them to speak or attend these gathering as a way to introduce   yourself and your service.
  • Get in the position to invite some of your target   clients to speak or present at a special and prestigious event
  • Attend some open-houses of the type of homes they   would buy
  • Put on a free event in the club-house of their   neighborhood or resort/golf-club that they would normally attend
  • Get in the position to speak (or even just   introduce/MC) at some of the events and meetings that they normally   attend
  • Facilitate or organize the type of charity   event or catalyst event that they normally would attend.
  • Attend boat shows and car shows that they would   normally attend
  • Advertise in magazines that they would normally   purchase.
  • Write articles or columns in magazines or   electronic magazines that they normally read
  • Write “letters to editors” and comment on articles   that would interest your target client
3) Where ever you show up, make sure you are adding  value to the interchange
4) After you have built a relationship  with a few of your target market — ask for referrals. Even though  they may not need your services at this time, they may have friends and  neighbors that would be interested.  Remember, they will also hang-out with  folks that are in their same social-economic standing.

What’s the Bravest Thing You’ve Ever Done At Work?

The Bravest Thing You’ve Ever Done At Work
Although I’ve done many brave things at work, this  was the most unforgettable because it not only hits an uncomfortable  topic – but shows how a truly, integrity-based company responds when  something is pointed out to them.
I was a manager of 12 developers and testers  at the company; and had just received a glowing performance review  rating.  Since I was a manager, I understood how the raises were  calculated based upon my review rating and current income.
My manager looked very pleased as he asked: “Well,  how do you like your raise?”
“I like the raise very much.  It’s the base  salary that I’m not too happy with.”
His face fell. “What do you mean?”
“I think my base salary is lower than most people  doing my level of work and at my performance level.”
My manager took a looked at my base salary and  nodded to acknowledge that he heard what I was saying.  “Okay.  Let me  look into this”.
“Thank you.  I really appreciate  it.”
The next time I met with my manager he said that I  was right about my salary and described a plan to adjust it.  He said that  because of my query, the company did a department review of all the  salaries and discovered that I wasn’t the only one not being compensated  appropriately.  Because the correction wasn’t just one person, the  company did not have the available funds to correct those  affected, all at once.  But they were going to continually increase  the salary of the affected employees with periodic raises every 4 months until  they were compatible with the average pay scale for our industry and  location.
I very much appreciated their response because it  illustrated two things:
1) The fact that they didn’t want to loose a  valuable employee because of a salary dispute.
2) Their integrity to not only correct my salary,  but anyone else’s salary that was below the national range.
I was very impressed with the way my manager (who  was 1 of  the 4 founders and co-owner of the company) handled the  conversation.  But I suspect that if he wasn’t one of the co-owners, the  story might have had a different ending.
Tell me your story.

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Advice for Managing Mediocre Employees

 

Advice for Managing Mediocre Employees

This is Laura Lee Rose, a business and efficiency coach that specializes in professional development, time management, project management and work-life balance strategies.  In my Professional Development Toolkit package , I go into professional development and real-world IT topics in detail. If you are interested in more training in these areas, get signed up

Mediocre employees are the most frustrating because they’re the ones who aren’t bad enough to reprimand, but they’re far from
being superstars either.  What are some tips for motivating the mediocre?

Well – my recommendation is to simply eliminate “Mediocre Employees”.
Step 1: The most efficient method is to set your job performance criteria such that you are pleased with everyone that meets those criteria. The performance criteria need to be directly tied to the company’s vision, mission, and goals. Those that fall below those performance criteria are ‘below expectations’ and are eventually placed on a PIP (performance improvement plan).
Clearly outline the company’s business goals. Then each department executives clearly outline their individual performance business commitments (PBC – or things they are responsible for doing) to meet the company’s business goals (which are appropriate and directly connected to their department). Then each manager below each department outlines their PBC for their role/responsibilities/department — what will achieve and accomplish their upper managements’ business goal. Then each employee writes their PBC that supports and accomplish their manager’s PBC. These PBC’s are then detailed into SMART goals (Specific, Measurable, Achievable, Realistic, and Time-bound goals). SMART goals have very tangibly and visible results (either your passed or failed on your goals).
If you and your team have done your job in clearly articulating and supporting your quality objectives and performance business expectations, then even those that merely meet your expectations (average employees) – are still doing acceptable work in helping the company reach it’s goal — because – after all — you have defined your quality standards and business commitments. If you are not satisfied with their work – then chances are that you have not clearly or effectively conveyed your expectations and business goals. Remember – if you are ‘wishy-washy’ on your expectations, you will get ‘wishy-washy’ performances.
My Professional Development Toolkit DVD discusses all of this in more detail. Contact LauraRose@RoseCoaching.info for more information on how to get this kit.
Step 2: Make an effort to match the employee’s career goals, skills and passions with the right job or role. If the role/responsibilities are aligned with what the employee wants to accomplish in the long run, the employee will be inspired and can’t help themselves from doing a terrific job. It’s more of a calling for them than a job.
Conduct frequent one-on-one meetings with your employees to discover their career goals, skills and passions. Direct them to roles and responsibilities that align the employee with both their goals and your company’s business goals. Show them the career path and required skill-set that they need to acquire to achieve their career goals. This might mean a change of departments. This might mean some additional certification and training. But this might also mean that they end up leaving the company because (through these one-on-one meetings) the employee realizes that their career goals do not match the company’s path.
My Professional Development Toolkit DVD discusses all of this in more detail. Contact LauraRose@RoseCoaching.info for more information on how to get this kit.
Step 3) Make the employee fully responsible for their own career. It’s not the manager or company’s responsibility that the employee has a satisfying work-life balance. It’s not the manager or company’s responsibility that the employee is happy at their job. It’s not the manager or company’s responsibility that the employee gets along with his/her coworkers or managers. It’s the employee’s profession; it’s the employee’s career. The manager or company can do is to support the employee in their career goals (through frequent one-on-one meetings with their employees). But the manager or company isn’t responsible for the employee’s career. The employee needs to take full ownership of designing their own career and life.
My Professional Development Toolkit DVD discusses all of this in more detail. Contact LauraRose@RoseCoaching.info for more information on how to get this kit.

 

In my Professional Toolkit, I provide worksheet, templates and guidance on how to accomplish these things.    In my Book of Answers: Companion piece to the Professional Toolkit, I have 100 work-life scenarios like the above.  The scenarios show how to accomplish your goals in similar situation.
For more information on how to get this toolkit or the “Book of Answers”, please contact:

vConferenceOnline.com/Bits on the Wire, Inc.
6420 E. Broadway, Suite A300
Tucson, AZ 85710
520-760-2400 or (877) 853-9158
info@vconferenceonline.com

Try it and let me know what you think.

How to quantify your performance on intangible roles and duties.

This is Laura Lee Rose, a business and efficiency coach that specializes in professional development, time management, project management and work-life balance strategies.  In my Professional Development Toolkit package , I go into professional development and real-world IT topics in detail. If you are interested in more training in these areas, get signed up
In past articles, I mentioned the importance of quantifying your performance to the company’s bottom line.  This prompted the following question from a reader:

What about employees in positions with less tangible monetary outcomes — what should they be communicating? For instance, someone who performs general office duties or works to build the company’s brand awareness.

Everything can be measured.  All you need to do is design and keep the right metrics.  Create a customer (the people that you service) survey at the start of your performance cycle.  Then keep the proper metrics to illustrate your performance or improvement against those criteria.  For instance, if you perform general office duties – you can note how many daily calls come in, how many dropped calls, how many Questions you answer and screen, how many calls your fielded on your own without troubling others, how many times your work have been returned to you with mistakes, how much time your new Q&A document saved the company, how taking the initiative and placing your Q&A document on your company website increased customer satisfaction and reduced first line help and support calls, how your new automated filing process saved the team time, etc.  Time can always be converted to money saved or spent.  People get paid a salary per hour – with those equations; you can easily calculate the money you saved the company.

For company branding awareness, incorporate customer and branding surveys at the start of your performance year.  You can then create performance metrics based on those success criteria.  Every quarter, you can conduct comparable surveys to illustrate your affect on the branding campaign.  You can also keep track of your website page hits, time between client exposure (client hits) and client purchase, and your lead to sales conversion rate.   The faster the client finds your product, learns about it and purchases – the better for the company.  These are the meaningful metrics to collect and make your performance tangible and measurable.

The key is to find the right metric to track to make your performance measurements.  If you cannot figure these metrics out, then meet with your mentor or business coach for ideas.

In my Professional Toolkit, I provide worksheet, templates and guidance on how to accomplish these things.    In my Book of Answers: Companion piece to the Professional Toolkit, I have 100 work-life scenarios like the above.  The scenarios show how to accomplish your goals in similar situation.
For more information on how to get this toolkit or the “Book of Answers”, please contact:

vConferenceOnline.com/Bits on the Wire, Inc.
6420 E. Broadway, Suite A300
Tucson, AZ 85710
520-760-2400 or (877) 853-9158
info@vconferenceonline.com

Radio interview with Kevin Price and the Price of Business

In a recent Price of Business radio show interview (http://youtu.be/xmeP6m0dfnY) Kevin Price asked me a few questions regarding “What’s going on with communication?” This is a quick follow-up to that segment.  We didn’t really get into how change our behavior when met with difficult clients that fail to return calls or essentially “drop out of sight”.
If the seller is getting frustrated on how people are just leaving them hanging — it’s easier to change your (the seller in this example) MO than the buyer’s MO.
Some quick things the seller can do:
1) Write up a binder (a promise to sign a contract) before the buyer stops communicating.
Having the buyers signature and contact information on something – often pressures them to call you back to tell you that you are no longer interested.
2) Set timelines and deadlines on when the this particular deal will expire. Request a small deposit to hold this particular deal for a certain length of time. After that time, the price would go to the regular rate. This adds a level of urgency in the buyer’s mind.
3) Give them a free 14-day trial – using their credit card or payment information. If they like the product or service, the credit card gets charged after 14 days. But the buyer needs to contact them in some way to discontinue the service.
4) Follow-up and call them back after a few days of “no communication”. The seller takes on the responsibility for the follow-up. It takes two to “stop communicating”. But this means that the seller needs to consistently collect contact information during their initial conversation. If the seller allows the buyer to walk off without giving them any contact information – the seller didn’t do their job properly. Consistently gathering contact information allows the seller to not only follow-up with the buyer, but present them with other offers, newsletters, coupons, and other announcements.
5) Before you leave your client, realize that they will probably be shopping around for a better deal. That’s the arena that we are now living in – with the overabundance of internet and e-commerce sales. Buyers have the global market at their finger tips. So, simply state: “Hey, buddy. I realize that you will probably be shopping around for other deals. If you find a better offer, please give me the opportunity to match or better it. Please call me back and allow me to try to match or better it.
In general – if you are frustrated with someone else’s behavior, there are often things you can change in your behavior to offset their behavior.

Video of the previous interview:

How do Companies prevent remote workers from feeling “left out”?

  • Have that one project that you have been stalled on?
  • Need  objective eyes on your problem?
  • Need just a different way to look at the solutions?

I have helped people on a per project basis.  For example: mapping out the pros and cons of two job offers; revamping their resume to attract more corporate interest; managing their boss; and narrowing the direction of their next steps.  I have reasonable rates for per project consulting.  No long contracts and discounts for continued enrollment.

If you haven’t taken advantage of your introductory career and time management coaching session, please contact LauraRose@RoseCoaching.info   You’ll be surprised how one conversation can change your life.


How do Companies prevent remote workers from feeling “left out”?

I recently received the following question:

How do companies prevent remote workers from feeling “left out”?
Incentives, such as bringing in lunch to headquarters staff and allowing casual attire in the office after employees meet certain goals, do nothing for those who work from home. What techniques improve or solve this issue?

I’m not a fan of handing off the responsibility of our own career and growth to someone else.

  • It is not the companies’ responsibility to make their telecommuters to ‘feel included’.
  • It is not the companies’ responsibility to make sure their employees network and build the proper working relationships with the right co-workers, sibling departments, other managers and executives.
  • It is not the companies’ responsibility to make sure their employees keep their jobs.
Career management and business networking is each individual professional’s responsibility. By placing the ownership of making the employee “feel included’ into someone else’s hands is a loosing proposition, because everyone is different. What works for one telecommuter will fail on the other. And then the company will resent the employee for not fully appreciating the efforts that the company made in the wrong direction. It is best if each individual takes full responsibility for their own career.
The very best way to “feel involved” is to simply to “get involved”. Some things that the telecommuter can do to “feel more included”:

1) Conduct and facilitate Brown Bag Lunch professional development series on new technology or operational procedures. Teleconference technology like Skype allows remote employees to both attend and present. Take the initiate to present on high-profile, company driven topics. Arrange for guest speakers that are expert in these areas. Request that the company cater in lunch for these special training and educational events.

2) Go into the office for face-to-face business networking. Even though you have the benefit of telecommuting, this does not relinquish your responsibility in your own business networking goals. Schedule monthly or bi-monthly visits into the office. Line up the important meetings with co-workers, managers, executives and mentors that are beneficial to your career growth and professional advancement. Your career is your responsibility – and the adage “out of sight, out of mind” is very relevant to telecommuters.

3) Schedule weekly or bi-monthly one-on-one meetings with your managers and mentors. Stay on your manager’s and mentors radar by scheduling frequent and regular one-on-one meetings. Have agendas and meeting goals/purpose identified in advance, so that you are not wasting these important people’s times. YOU facilitate and conduct these meetings to show your intentions and initiative. Ask about your performance and share the type of projects that you would like to be assigned to. Review the gaps in your skill set that you need to accomplish to gain those desired positions. YOU suggest/ask for things that you would like as rewards for meeting certain goals.
These are only three things the employee can do to take charge and ownership of their own professional advancement and career management.

Bottom line: If you leave it up to the manager to guess about your own desires, they will guess wrong. You will be unhappy and they will resent you for not being appreciative for their attempts to make you happy. Take ownership of your own happiness.
In my Professional Toolkit, I provide worksheet, templates and guidance on how to accomplish these things.    In my Book of Answers: Companion piece to the Professional Toolkit, I have 100 work-life scenarios like the above.  The scenarios show how to accomplish your goals in similar situation.
For more information on how to get this toolkit or the “Book of Answers”, please contact:

vConferenceOnline.com/Bits on the Wire, Inc.
6420 E. Broadway, Suite A300
Tucson, AZ 85710
520-760-2400 or (877) 853-9158
info@vconferenceonline.com

Try it and let me know what you think.


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Should I Give Discounts?

 

Should I Give Discounts?

IT Professional Development Series

By Laura Lee Rose

 

Hello, this is Laura Lee Rose – author of TimePeace: Making peace with time – and I am a business and efficiency coach that specializes in time management, project management and work-life balance strategies.  Steve Wynkoop and I talk a lot about designing and managing our professional careers on a weekly interview on SSWUG TV. One recent question popped up last week, regarding providing discounts for start-up companies and nonprofits.

 

A student asked:

I have been approached by non-profits as well as other small start-up companies to give them a discount on my products and services. Should I give them a discount?

I am not a big fan of devaluing your worth. Your time and effort is very valuable. And a non-profit or small business is not that different from any other business. They are still in the business to generate money. Non-profits may not focus on making a profit but they still have to budget for working expenses, they still pay their employees, still generate income (through sponsors and donations). Your service becomes a necessary expense for their company.

Having said that — I do see value in trade or bartering. For instance, you can give a discount in trade for advertisement in their newsletters, websites, and programs. If they provide a service that you can take advantage of – you can discount in trade for XX hours of their service.  If their client base matches your target market, you may have other opportunities for additional promotional opportunities.  For instance, you can arrange to become their sole vendor to their clients in your chosen product or service.

Example: Restaurant may want you to create a website for them. They are just starting out and are asking for a discount on your webdesign service. You have your own bills to pay and you want to attract clients that really value your time and expertise. You want to attract clients that are willing to pay you what you are really worth. On the other hand, you would like to see these people succeed. You can offer them a discount in exchange for:

1) A mention in their menu

2) A mention on their website (Website designed by: signature)

3) XX number of complimentary meals

If they want you on a retainer to maintain their website – you can include XX number of comp meals a month in addition to your discount price.

 

One warning: Do not accept barter for something that is not of value to you.  That’s comparable to giving your services away for free.  Make sure you continue to feel that your worth is being appreciated, by investigating alternative solutions that better meet your goals and success.

 

For example:  A business and success coach asks you to redesign and develop her new website at a discounted rate.  You don’t really need her coaching services and don’t see a fit at first.   But instead of dismissing it right away or giving the discount for free – you investigate a little more.  Asking the important who, what, where, when and how – about her business; you discover that her client base is other entrepreneurs in various fields.  Her primary focus is providing training to other start-ups and new business owners.  With this information, you design a barter, vendor and affiliation program with the following goals:

1)     Be the exclusive web-design vendor for her training classes, training DVDs, and promotions trade shows.

2)     Be prominently displayed and recommended on her website

3)     Be recommended to her clients as their website designer as they get started on their new business

4)     Be one of her speakers at her various trade shows, seminars and retreats

5)     Become an integral part of her support team and staff when guiding her clients through the deployment of their brand and websites.

If the above was not the case, it is recommended that you direct the life coach to someone else that could make use of her services.  This way, you will get the advantage of providing referrals and assistance to others (which puts you in good standing with both businesses).

 

In my IT Professional Development Toolkit, I go into the: who, what, where, when and how to accomplish all of the above. I also have a transferrable skill worksheet.  For more information about the toolkit, please contact

 

vConferenceOnline.com/Bits on the Wire, Inc.
6420 E. Broadway, Suite A300
Tucson, AZ 85710
520-760-2400 or (877) 853-9158
info@vconferenceonline.com

 

 

Or sign up for my weekly Time and Career Management Newsletter at: http://eepurl.com/cZ9_-/

Using hosting etiquette to close the deal

 

Using hosting etiquette to close the deal

 

Hello, this is Laura Lee Rose – author of TimePeace: Making peace with time – and I am a business and efficiency coach that specializes in time management, project management and work-life balance strategies.  Steve Wynkoop and I talk a lot about designing and managing our professional careers on a weekly interview on SSWUG TV. Recently I was approached by reporting wanting to know the following:

 

You’re hosting your boss or a client at a business lunch – what can you does to really make a good impression and seal the deal?

Hosting Etiquette is same in most cases. Beyond the regular things you might do, review the following and see what you think:

  1. Find out their favorite foods and make reservations to a restaurant that provides high-quality cuisine of that type. – Vegan, probably a steak place isn’t the best choice.
  2. If it’s a group environment, make sure the restaurant have enough options to satisfy a diverse group of dietary and religious needs.
  3. Arrive early – to be at the restaurant before the first guest.
  4. When you first arrive, tell maitre d’ that you are to receive the check at the end of the meal. Do this before you are seated.
  5. Make it clear to your guests that they can order pre-dinner drinks, even if you are not ordering a drink for yourself.
  6. If a guest(s) is more than 10 minutes late, seat the rest of the group and ask the maitre d’ to seat the late-comers when they arrive.
  7. When meals arrive at different times, suggest that those that have received their food to start eating. Lead by example and follow your instructions to make them feel more comfortable in doing it.
  8. If an error is made by the staff or kitchen, tell the guest that you will handle it (so that the guest doesn’t have to have that difficult conversation and illustrate that you are a problem solver). Then speak to the server politely and explain the situation without blame.
  9. Don’t discuss the price of the meal when paying. Don’t make a big deal about paying the bill.
  10. Allow the guest to lead the conversation and topics. Don’t interrupt their story to tell your tales. Don’t use the conversation to show off. Use the conversation to understand their perspective and understand how they can best benefit from your association with them.
  11. When commenting on their opinions, say “Yes – and I have also noticed ….” to introduce an opposing viewpoint without introducing conflicts and contradictions.
  12. Even when you invite guests to order whatever they want, some guests will hesitate to order. Most guests try to order something priced in the same range as the other guests. And if you make them go first, they don’t have a range to use. Make some recommendations to put them at ease with the pricing.
  13. Don’t openly complain about the service, restaurant, location, etc. They will wonder that if you don’t like this place, why you are bringing them there. Avoid negatives in speech and actions.
  14. Don’t point out problems, create solutions at all times.
  15. Mirror body language and speech patterns to convey that you are synchronized. Paraphrase what they are saying to make sure you understand what they are trying to convey, before you respond. Seek to understand first, then to be understood (from Steven Covey’s 7 Habits of Highly Effective People).

 

In my IT Professional Development Toolkit, I go into the: who, what, where, when and how to accomplish all of the above. I also have a transferable skill worksheet.  For more information about the toolkit, please contact

 

vConferenceOnline.com/Bits on the Wire, Inc.
6420 E. Broadway, Suite A300
Tucson, AZ 85710
520-760-2400 or (877) 853-9158
info@vconferenceonline.com

 

 

Or sign up for my weekly Time and Career Management Newsletter at: http://eepurl.com/cZ9_-/