November 21st 2008
Often, we hear a negative response and assume that it is an objection, especially when it concerns price. In many cases, the prospect has simply raised an issue that needs to be explored. Price concerns often mask other issues.
What happened? Perhaps you walked into the store having decided that you wouldn’t spend more than, say, $750. Sometimes we give the store attendant a particular price range, Continue Reading »
June 27th 2008
Your pricing policies are first and foremost intended to result in a profit for your company. There are several instances where an adjustment in price can achieve a particular objective, such as:
You should always proceed with utmost caution and remember that the main objective is to achieve a profit for each and every item you sell. Continue Reading »
June 27th 2008
Companies can increase profit either by cost reduction or by margin improvements. Margin improvement or improvement in the gross profit can be achieved either by increasing unit selling prices or by increasing sales volume (this includes the possibility of reducing unit selling prices in order to be more competitive and increase sales volume).
Selling prices are affected by supply, demand and cost conditions. All companies need to ensure that their pricing policy gives the best opportunity for maximising sales and profits.
The inflation rate is the percentage rate per period that prices are increasing and should provide a guideline to the level of price increases generally. Continue Reading »
May 30th 2008
Enthusiasm will turn the worst salesperson into a successful mover of product. Finding the need and filling it creates professionalism, repeat customers, and higher tickets. The understanding of objections and the proper method of handling them adds a measure of depth and confidence that will help you enjoy selling and reduce the anxiety surrounding the sales situation.
Only interested customers raise objections—disinterested ones will agree with everything you say . . . until it’s time to hand over the credit card.
Many are the occasions where I’ve made a flawless presentation to a potential buyer who said “uh-huh” fifty or so times as I entranced him with my story. The order seemed to be in the bag, since no objection was raised at any point, not even about the price. When it seemed like a good time to ask for the order, my request would be met with “No. I don’t need any today. I’m really not interested.” Continue Reading »
May 7th 2008
Where are you going to do business? Regionally, nationally or internationally? How much will it cost you to market yourproducts nation-wide and do you have the resources? One of the biggest mistakes that new entrepreneurs make is that they try and expand too fast. Their own success can lead to their downfall.
Is your product or service oriented towards the rural or urban areas, or both, and how will you adapt your approach?
Also, how many competitors are already operational in theareas that you want to go into? How many outlets can successfully operate in one area? Continue Reading »
April 22nd 2008
This one really bugs me. It’s a philosophical thing. You’ll be pleased to see a lot of stores encouraging you in the same thing: SAVE BIG! SAVE MORE! But they’re talking about something else.
The only way to save money is . . . well, to save it. That means, Don’t spend it. When a store announces that you’ll “save money,” what they really mean is that you’ll spend less of it than if you shopped somewhere else. (And as we saw with that discount trick, that claim may not even be true.)
But whether you spend $145 for something, or “save” by spending just $125, you’re still spending it. Of course, retailers don’t want you to think that way. They know that if you focus on what you’re spending, you may have second thoughts. So they try to focus on the positive side. There’s nothing wrong with that. And if you truly are going to spend money anyway, then look for ways to spend less of it. Continue Reading »
February 20th 2008
Pricing is one of the trickiest areas of business for small companies and major corporations alike. An inexperienced manager might suppose that simple formulas exist for determining price—say, a certain multiple of costs.
Certainly you can begin calculating a price range as a function of your costs. Indeed, your final price must provide a substantial enough margin over your costs to allow for taxes and profit.
The issue of price is a controversial one business school professors disagree over which factors are most important h determining price. The reality is that price is a function of several interrelated factors: Continue Reading »
January 29th 2008
When assessing the viability of an existing business for franchising, several critical factors should be considered, for example:
January 8th 2008
The 4-Ps are a useful framework for designing e-Marketing strategies — and have the benefit that they are clear and familiar to most managers. Successful e-1Businesses bring together the elements of the marketing mix into an integrated, offer representing value to the customer. This can be illustrated, for example by outlining aspects of the 4-Ps of the marketing mix of the office supplies company Quill (www.quillcorp.com).
Place
Customers are offered the convenience of easy ordering — not just by Web but’ via many other routes, with expert personal assistance readily available by telephone. We have personally tested the service and found it fast and reliable. particular benefit is the UPS (courier service) order tracker so that custom can track the delivery status of their order.
Quill offers a wide range of office and computer supplies, furniture and speciality products. The main selling point is the very wide range available from stock - almost everything imaginable for the office. This is a ‘hypermarket’ -type approach, offering customers far more choice than would be expected from most traditional suppliers.
Competitive, discount prices can be offered. Low price levels are sustainable because of the e-Efficiency of the business, and also the economies of scale arise from successfully selling large volumes. Continue Reading »
