There are a variety of pricing strategies in existence. Each strategy is used in a different set of circumstances. Some of the things to consider when choosing the best strategy for your situation are your costs; both short term and long term sales and profit goals; competitors’ activities; and customer lifetime value. While there are others, a few of the more popular pricing strategies available to you are:
- Cost plus mark-up. Here, you decide the profit you want to make before setting the price. Figure out your costs and your selling price is simply your costs plus your pre-determined profit number. This approach helps keep your profitability top-of-mind, but may also result in prices that are out-of-line with customer expectations and competitor pricing.
- Competitive pricing. When competitive pricing, you look at the prices your competitors are charging and use those prices as a benchmark when pricing your own products. You
Not Knowing Who Your Audience Is and What They Think
Your audience is your public, your prospects, your clients and potential clients. For most businesses, that doesn’t include everyone in the general public. If you are a swimming pool cleaner, you will get the most from your advertising budget by promoting to pool owners. You can get an even better response if you know what concerns pool owners have about the cleanliness of their pools.
The best way to learn more about your prospects, who they are and what they think, is by survey. But if you can’t do a survey, you can learn more just by talking to current customers, looking back through past sales, evaluating trends, and studying what works for your competition. Promote directly to the concerns of prospects rather than just telling them what you offer.
Not Being Consistent
- Message — What is your message? Based
Population Growth and Economic Clout Tell Powerful Stories
Overall, says Multicultural Marketing Resources’, Lisa Skriloff: “The African-American, Hispanic and Asian populations have a combined buying power of more than a trillion dollars and minority populations are fast becoming the majority population in major markets.” But shifts in thinking toward culturally based marketing–targeting ethnic segments based on their cultural framework–will expand, creating multicultural marketing opportunities in still new ethnic segments in places where they are numerically significant.
California diversity consultant, Rhonda Albey, cautions: “Appreciate the diversity within groups as well as among groups. Terms like ‘Hispanic’ and ‘Asian’ are frequently used without acknowledging the wide-variety of peoples such terms include. ‘Asian’ can refer to any one of hundreds of nationalities, language groups and cultures. Entrepreneurs need to be aware that what appeals to Chinese-Americans in California may have little appeal for Korean-Americans in New York, although they’re all Asian-Americans.”
Culture as …
Give yourself permission to redefine marketing to fit your style.
A program participant was very good at her profession as a lawyer but was very uncomfortable with marketing. I have clients brainstorm and write down their strengths and passions. She expressed she had very few on her list. It doesn’t matter how many are on your list as long as you pay attention to what’s there. Some people have 30-40, others have 5-10. She chose her top 3.
Out of her 3 the main passion and strength on her list was one-on-one conversations. We then began thinking of who might be good strategic partnerships for her business. She was thrilled she could not only market from her favorite and most comfortable approach, but also choose her favorite environment, which happened to be in a cozy coffee shop. However, that wasn’t all that was holding her back. She had …
The thing that I noticed when I did this for my own business was that the majority of new clients could be attributed to more than one source. For example, a current customer gave them my name (#2 in the trust diagram), the person then visited my website (#5), viewed my portfolio (#4), and then made the decision to contact me.
This ties in to the rule of thumb that it takes seven contacts with a potential customer before they will make the decision to purchase. Now when I sold real estate, this usually was used by sales trainers in the context of, “Make seven cold calls and eventually they will list with you.” I don’t know about you, but for me cold calling just takes all the fun out of what I’m doing. Who wants to get business that way? Going back to the client trust diagram, that is …
WHO ARE YOUR POTENTIAL CLIENTS?
Rule number one in the world of marketing is that you can’t be all things to all people! You must know exactly who your potential clients are in order to reach them effectively. Your client base is not “anyone who is disorganized” — but it might be “working moms” or “entrepreneurs” or “elderly people who have to downsize their living environments.” And the more specific you can be about your demographics (age, income level, gender, geographic location, etc.), the easier it will be to connect with these clients. Since my area of expertise is Professional Organizing, let me share an example of some demographic groups that I might market to:
- working moms who have kids in daycare or afterschool care
- entrepreneurs who have been in business (less than / at least) 1 year
- elderly homeowners who are moving to a retirement community
- homebuyers who are
As I am always telling my clients, educating your potential clients is the first step to having a long lasting relationship. Simply replacing windows, installing a new furnace, or even adding on a new room, energy efficiency should be important. Important enough that contractors need to emphasize this in their marketing materials.
Each marketing piece that you create, should promote the actual dollars they will be saving by using your specific services and products. For example, if you are a full design remodeling contractor who occasionally does replacement windows, creating a marketing campaign for windows, with the message that with the installation of energy efficient windows, will lower the homeowners utility bills, allowing homeowners in the long run to expand their home, request more of your services or simply have lower monthly costs with an energy efficient house.
A vital part of this energy efficient marketing is to educate not …
Marketing is expensive
Marketing is only expensive (and therefore an expense rather than an investment) when it is either unaccountable or ineffective. There are myriad ways to market you business inexpensively that are highly effective, once you know how. The key is to understand the elements or variables that go into each activity or campaign, and how they affect the ultimate outcome. This is where most people go wrong, and that’s why their marketing fails to produce the results that they’d hoped for. Often the message is weak or confusing, it’s being sent to the wrong people, or they fail to follow up. Get the formula right, and marketing can be very inexpensive – I spend less than £100 per month on marketing and I’m getting great results.
Marketing means I have to be pushy and salesy
Good marketing, done the right way is neither pushy nor salesy. It’s a …
With this EDDM marketing, you can mail directly to local residential customers in the address area of the card. The maximum quantity allowed in this retail program is 5,000 to 25,000 a day at any one post office. Mailers must be bundled in 50 or 100 so they can be quickly distributed to the right carrier.
Put in your target zip codes and choose using breakdowns showing residential, business, total, age 25-44, size, income and cost. This free easy-to-use demographic guide map lets you select the best neighborhoods to give you a fast return on your investment.
You can deliver to other post offices as long as you send a minimum of 5,000 to each. This is so the post offices are not overloaded with EDDM mail. Another advantage is that many printing services offer full service mailing. They do the paperwork, bundling and delivery to your post offices of …