The Art of Setting Prices

Marketing = talk to your trade association for market rates, and other in the industry.
Exclusivity = if your the only company providing a necessary product of service, you can charge more.
Quality = quality does command higher prices. but it's often difficult for a consumer to judge. How can a potential customer know one is better qualified then the other? That's when "sampling" can be an effective way of marketing, whether free sample or an hours free consulting.
Trustworthiness = as a result of personal experiences, referrals, brand names, testimonials, years in business, and strong previous client list.
Convenience = owner deli vs. far away Costco. Just like a consultant who comes to your house.
Cost to Reach Market = difficult to reach? Charge more. advertise? Recoup those costs. It takes a year to work through the procurement department of a major corporation? Charge more to account for that time & effort.
Development Time =charge more, usually, for things that take a longer time to develop, create, or build. Staff-time is a greater overhead. Sometimes your customers may not always fully appreciate the time your time, you get price resistance.
Small Market, Big Prices = if a relatively small number of people want your product, you should be able to charge more than if many people want it.
Capacity = How busy are you? If you have more work that you can handle, you can probably raise prices.
Perceived Value = this is where design, packaging and marketing come into play - professional looking website & marketing materials can increase you perceived value.

Pricing is more of an art than a science, and two primary factors: What the market will pay, and what you need to make profit. 

Work smarter, not cheaper = improve profits through innovative practices = be the first to think outside the box. 

Focus on value, not Prices = Value is a Term Used to Mean the Combination of PRICE & QUALITY.

Target the Right Customer = Not all Customers are Willing to Pay More So Aim your Marketing Efforts at Customers who will Respond to the differences you Offer & can Pay a Slightly Higher Price for that Value.

Build LOYALTY to YOU, Not Your PRICE = Even when/if you use special pricing (discounts, introductory offers, sales) to attract customers, go to work immediately developing a relationship that keeps customers coming back when the prices go up.

You might win the battle, but lose the war as a "low-price leader."

REMEMBER, YOU'VE GOT A LOT MORE TO OFFER THAN JUST A LOW PRICE. 

DO NOT NICKEL & DIME YOUR CUSTOMERS

ex. $3000 fees for a graphic design, and add $3 for calls? Don't leave a sour taste with a customer. 

Rule of Thumb: 

(1) Absorb all Normal, Nominal, and Predictable Costs. 

(2) Charge your Customer for Unusual or Significant Expenses. 

When you do assume the cost of items that your competitors charge for, feel free to list items on the bill followed by the word "Complimentary" (You Could charge for this, but you don't)

GIVE IT AWAY TO GROW YOUR BUSINESS

donating or giving away your product or services is also a very effective way to build your business. It is also good for campaign morale. 

Donating to Worthy Causes: 

"pro bono publico" "for the good of the public" all of us should help our communities by donating our time to help others. And even donate your services in the form of gift certificates to be auctioned off for local charities. 

Lower Your Prices = reduce for non-profits

Sampling = free review/walk-through / sketch

Help Others Succeed = Casual acquaintances gave me assistance . They introduced me to key contacts, provided free expert advice, shared resources, and much technical assistance.

PREPARING YOUR BUSINESS TO GO ON WITHOUT YOU-

check signing authority, minor expenses, passwords, basic knowledge, getting the work done, will, revocable trust, tax planning,, life insurance. 

DEVELOP YOUR EXIT STRATEGY-  

a long-term strategy for transferring ownership to others. 

Some build businesses to sell it to a larger company. 

An exit strategy can help direct your company's short-term/long-term Goals. Or just to help direct it's growth.

SELL - BE ACQUIRED - MERGE - GO PUBLIC - FAMILY EMPLOYEE BUYOUT - GO OUT OF BUSINESS. 

What does Winning Mean?

You can define excellence in your own business, indeed in  your own life, without focusing on beating the competition.
Success comes to those who strive for excellence & achievement rather than those who spend, their energy trying to defeat the other guy. Excel at your own game, AND THE COMPETITION will have to WORRY ABOUT YOU.

PARANOIA-DIVERSIFICATION

Get a Solid Foundation: "Build one business at a time." Impossible to develop sales channel until the first is developed.
Identify Current Secondary Sources of Sales:
Develop a Plan: Cultivating a new sales channel is very much like starting a new business. (*Hire Help) Research the market & interview prospective customers, create a budget, and develop a plan.
Focus on One New Channel at a Time: Don't try too many things at once; success is more likely if you focus your efforts.
Renew Your Enthusiasm: Remember the energy you had when you first started? STRETCH YOUR WINGS AGAIN. (and I am getting my inertia)
Competition?
Inertia = Customers have the option NOT to buy at all. Emphasis on [=] It's not enough for you to know the customer needs your products and service. The customer must truly believe they need YOU. (ex. someone with a Pressing, Pungent NEED. Emergency.)
"They don't do what they should do, they do what they have to do or want to do."
How will you compete against inertia? How will you make customers recognize they truly need or badly want you product/service?
If you are taking on the competition, you also have to understand all the other ways for customers to spend their money.

Finding Your Niche-becomming a Specialist

Sizable? Heck yes.
Reachable?  through publications, organizations, media, etc.
Self-defining? your potential market should have, or feel they have, special needs. That's why they want a specialist.
Sustainable? to support your business long-term, where you won't quickly deplete the customer supply.
This is one of the most powerful ways to set yourself apart from competitors and focus your marketing efforts. And more $. An average of 11%- however, if you specialize specialize in an industry you may have to broaden the geographic area.
Industry/Business Type:
Demographic Group: gives you an immediately recognizable way to attract and welcome and target to become familiar with the issues important to that group, their sensitivites, and buying habits.
Unique Knowledge: emphasize areas in which you have in-depth education/experience, training/understanding.
Style: Customers can easily see what sets these businesses apart
Geographic: eh.

Design for the Home-based Entrepreneurs: Using Sustainable Strategies

REDEFINE IT :: there are no failures, just learning experiences. (Shit I might have to fail this one)
DEPERSONALIZE IT :: analyze your mistakes, but you won't learn anything if you're too busy beating yourself up for it.
CHANGE IT :: you know what you did wrong, the hard part is changing your behavior. Be patient and forgiving because change takes time.
MOVE ON :: "Pick yourself up, brush yourself off, and start all over again."
-- :: Get over it, and Stay over it :: --
"When we are stuck in the past, we can't move forward." Because once you're over those old defeats, you've got a better chance for new victories."

STRATEGY: Mission Statement- "If you don't know where your going, how will you know when you're lost?"
-Brief Description
-A vision of what you want to become
-The philosophies + values that will characterize your actions
-Key strategies for reaching your goals
-What distinguishes you from your competition

Developing Your Strategic Position: this differentiates you from others. (Vectorworks) Offer unique, special and difficult/impossible to replicate.
Finding Your Niche: when thinking about choosing a specialization ask, is it Sizable [Market segment should be distinct, but not too small], Reachable [should be publications, organizations, or events for your specific market- to let them know you exist], Self-defining [potential market should have/feel they have special needs. That is why they want a specialist. Specialists also typically charge higher prices]

Embracing Change

Changes Takes Time. Change is a process, not an immediate outcome. It takes one year for a change to become a habit.
Stages:
1 CONTEMPLATE: You start thinking about your goals, but still seems unachievable.
2 RE-FRAME: You start saying, "This is going to happen. I can make this work"
3 PLAN: Convert desires into specific, realistic actions you can take.
4 COMMIT:You make a real commitment to your goals + plans.
5 TRY + FAIL: You begin to make changes but are inconsistent; you fall back into old patterns.
6 RECOMMIT: You remind yourself of your goals, your plan, and your belief that you are capable of success. You start again.
7 HABIT: You consistently change your behavior!!
Turning Failure into Success: "Change how you think about failure."
"Sometimes, 'failures' turn out to be fortunate; force you to re-examine your goals, decisions + methods. To be able to then choose to take a different-better-path/deal."

Seizing Opportunities

While we wait for success to fall in our laps, real life keeps trudging along. If we want things to be different, we must learn to recognize opportunities + seize them; we have to do something.
WE KEEP WAITING FOR SOMETHING TO RESCUE US WHILE MISSING OPPORTUNITIES TO HELP OURSELVES.
Be an active participant in your own transformation.
Make a Plan: Vision achievements wanted, develop plan for reality. Developing a plan gives you a framework for making decisions.
Get Accustomed to Making Decisions: Can't act on every good idea.
Recognize That the "Perfect" Solution is never going to just come along (or do they? Sometimes.) Life doesn't offer perfection, it offers chances. (Poker! Don't get what you don't put in.)
Get out of your "Comfort Zone": (Hear this all the time. This is why mommy left Korea) if it's not bringing you the results you want, Change! is a must, and it's not comfortable.
Make a commitment: GET USED TO SAYING NO. GET USED TO SAYING YES. WHATEVER, JUST AS LONG AS YOU DO IT WITH COMMITMENT + CONVICTION.