If you make a product, selling it on Amazon.com is a double edged sword. Sure, Amazon offers amazing exposure and great sales volume ... but their relentless discounting takes sales away from other (higher margin) re-sellers.
Worse, Amazon can steal sales from your own website.
Too many business owners are stuck with a no-win decision: take Amazon's volume at a price that you can't
I've been doing a lot of negotiating lately: Contracts, pricing, sales. And I've discovered a super-power that I did not know that I had... the power to say NO.
NO has saved me from making huge mistakes and has earned me countless thousands of dollars. When a prospect asked me to reduce my bid price by half, I said no. When another wanted twice the service for the same price, I said no.
Like it or not, customers are not all created equal. Are they all equally profitable? No. Can your business afford to service every customer? No. Shouldn't you treat them all the same? No. No. No.
If you don't know one customer from the next, wake up and smell the segmentation.
In almost every business, just 20% of customers account for 80% of profits. And many businesses would
There are plenty of ideas about how to calculate the perfect price for your products or services, but none are very interesting or useful for your small business.
If you are looking for something to put you to sleep, reading about “price theory” is perfect. You could learn to set prices using games, options, alternatives, arbitrage, value, and even something called “Austrian pricing”
Is your business making money for you or not?
To answer this question, you have to know the difference between Gross Profit and Net Profit. And to know that... well, I'm getting ahead of myself.
To make this all a lot simpler, I've made a couple of VERY short videos. These two 2-minute "White Board" lessons explain everything you need to know to be sure that your business is making real
Monday. Time for my Monday Rant. Today.... "Penalty-Based Pricing Models", or "Why Kessler Hotels Don't Want My Business". Are you ready?
I want you to think about your own pricing strategy when you read this. What do your prices communicate to your customers? Are you saying, "buy from me and you'll get more value than you paid for?" Or, as I found below, are your prices telling your
Quick: Which is more important… Profits or Sales?
Three companies were on my radar this week, all CRM companies competing for the same customers: Avidian (Prophet), 37 Signals (BaseCamp) and SalesForce (SalesForce). Which do you suppose has the most sales? Which do you suppose is making the most profit? Which one has the happiest shareholders?
Lots of companies are