Even though they want more profit, most businesses have never formulated a formal price strategy that effectively matches positioning, brand, target customer, and marketing designed to deliver it.
And everything needs to be aligned – your brand, your image, your digital presence, your team’s presentation, the way they service and sell, the product / service selection of the business, and the hard systems that deliver a consistent results to all the key stakeholders.
Get this right and your business will deliver more profit to the bottom line.
Most SME’s do not understand pricing strategy and end up costing themselves margin because of it.
For example for over a decade our research showed that there were no more than 50 items in a pharmacy that were price sensitive out of an average 14,000 items stocked.
By monitoring prices and remaining consistently under their competitors our clients got the reputation of offering excellent value even though they had a gross profit margin 35% higher than the industry average.
This same thinking can be applied to any business.
Together with your brand proposition, effective targeting and curated product / service mix this strategy delivers more profit more often.
Most product buying decisions in businesses are left to junior staff with virtually no training, little experience and a lot of personal bias when it comes to stock selection, ordering and pricing, and yet for a retailer, stock selection is possibly one of the most crucial determiners of success.
Most services business are obsessed with selling single services priced to the market, or hourly rates without considering how to package services into a better…
– What do you do that nobody else does?
– Who do you do it for?
– Why are you better?
While your product / service offering should appeal to a broad base, you need to, using expert knowledge curate a range of products / services that will specifically appeal to your “A Class” customers and display them in a way that will draw these people to you.
First Offering, Best Offering
Make it easy for and train your team to offer your best product to your customers first.
Solution Sell, Upsell and Cross Sell
Train your team the key fundamentals of selling and insist they follow them. Then make it easy to succeed.