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Sunday, September 19, 2010

Pricing Strategies

What price should you ask for your product or service?
If you want to set a price that brings with it a healthy profit... something that will most definitely keep that wolf from howling at your door (and the bank manager at bay)... read our '4 Key Pricing Strategies' below.

4 Key Pricing Strategies

There are at least four ways to calculate your pricing structure:

Cost-plus pricing is calculated on the cost of producing your product or service plus an amount that you need to make a profit. This is usually expressed as a percentage of the cost. It is generally more suited to businesses that deal with large volumes or which operate in markets dominated by competition on price.

Value-based pricing focuses on the price you believe customers are willing to pay, based on the benefits your business offers them. It depends upon you being able to clearly define and demonstrate the benefits your product or service provides to customers.

Target-return pricing involves setting a price to achieve a target return on your investment.

Psychological pricing takes into account your customers' perceptions of your price, including positioning, popular price points (the point at which they are more willing to make a purchase), and fair pricing (what they consider to be 'fair').

1.Pricing Tactics Discounting

Discounting can be a powerful short-term measure but it does carry some dangers too. You could use it to get rid of old stock or to encourage large orders. Consumers may balk at paying full price in the future or begin to perceive your product or service as somehow inferior to competitive brands. Discounting may send a signal to consumers that price is negotiable and that value can be given away. Trying to sweeten the deal by bundling additional products and services with the core offering can drive up costs (and decrease profits) and teach consumers that the product or service is not valuable.

2.Odd Value Pricing

If your consumers buy primarily on price, you can offer your products at a penny or two less than normal on bulk orders.

3.Low Pricing To Attract New Customers

You can sell a product at a low price with the sole aim of winning new customers.

4.Skimming

If your product or service is unique in the market, you can sell it at a high price. There's a danger that you could just price yourself out of your market.

Penetration

To gain market share, you can sell your product or service at a lower price and gradually raise your prices.

Conclusion

However you price your product or service, take time to measure the impact it will have on consumer perception and demand and of course, on your company's long-term profits.

Wednesday, September 15, 2010

Three Skills to Improve Conversation

Three Skills to Improve Conversation

One key to becoming a great conversationalist is to pause before replying. A short pause, of three to five seconds, is a very classy thing to do in a conversation. When you pause, you accomplish three goals simultaneously.

The Benefits of Pausing

First, you avoid running the risk of interrupting if the other person is just catching his or her breath before continuing. Second, you show the other person that you are giving careful consideration to his or her words by not jumping in with your own comments at the earliest opportunity. The third benefit of pausing is that you will actually hear the other person better. His or her words will soak into a deeper level of your mind and you will understand what he or she is saying with greater clarity. By pausing, you mark yourself as a brilliant conversationalist.

Ask Questions

Another way to become a great conversationalist is to question for clarification. Never assume that you understand what the person is saying or trying to say. Instead, ask, "How do you mean, exactly?"

This is the most powerful question I've ever learned for controlling a conversation. It is almost impossible not to answer. When you ask, "How do you mean?" the other person cannot stop himself or herself from answering more extensively. You can then follow up with other open-ended questions and keep the conversation rolling along.

Paraphrase the Speaker's Words

The third way to become a great conversationalist is to paraphrase the speaker's words in your own words. After you've nodded and smiled, you can then say, "Let me see if I've got this right. What you're saying is . . ."

Demonstrate Attentiveness

By paraphrasing the speaker's words, you demonstrate in no uncertain terms that you are genuinely paying attention and making every effort to understand his or her thoughts or feelings. And the wonderful thing is, when you practice effective listening, other people will begin to find you fascinating. They will want to be around you. They will feel relaxed and happy in your presence.

Listening Builds Trust

The reason why listening is such a powerful tool in developing the art and skill of conversation is because listening builds trust. The more you listen to another person, the more he or she trusts you and believes in you.

Listening also builds self-esteem. When you listen attentively to another person, his or her self-esteem will naturally increase.

Listening Develops Discipline

Finally, listening builds self-discipline in the listener. Because your mind can process words at 500-600 words per minute, and we can only talk at about 150 words per minute, it takes a real effort to keep your attention focused on another person's words. If you do not practice self-discipline in conversation, your mind will wander in a hundred different directions. The more you work at paying close attention to what the other person is saying, the more self-disciplined you will become. In other words, by learning to listen well, you actually develop your own character and your own personality.

Action Exercises

Here are two things you can do immediately to put these ideas into action.

First, make a habit of pausing before replying in any conversation or discussion. You will be amazed at how powerful this technique really is.

Second, continually ask, "How do you mean?" in response to anything that is not perfectly clear. This gives you even more time to listen well.

Client Payment Problems?

Client Payment Problems? Try These 3 Simple Tips

Signing up new clients is a joy…unless their payment bounces. If that happens to you, you’re likely to feel guilty, uncomfortable and wonder what you did wrong. To top it off, a client whose payment bounces is likely to avoid contacting you, leaving you to wonder what to do next.

If this happens to you, the first thing to realize is it’s NOT PERSONAL. Yes, you’re the one temporarily getting the short end of the deal, but keep in mind it isn’t because you didn’t do enough, aren’t good enough or don’t deserve to be paid.

As a woman entrepreneur, you must learn how to navigate these kinds of sticky situations with grace, compassion and leadership. The good news is that if handled correctly, most client payment situations can be quickly resolved and can even help you deepen your relationship with your client.

Let me give you my 3 “best practices” tips for resolving client payment situations and eliminating any feelings of guilt, discomfort or self-blame in the process.


Tip #1 Don’t Let Your Feelings Hijack You From Standing In Your Power

Seeing that “sorry - payment declined” message appear in your inbox can trigger a whole host of feelings: from anger and righteousness to guilt or self-blame. Before you let these feelings hijack you from standing in your power, take a deep breathe… and another. This is not something that was done “to” you. It’s just something that happens when you’re in business.

What will help is if you think about your client for a moment. Are they likely feeling embarrassed, guilty or even humiliated? Probably. And if they are, they’ll typically avoid wanting to talk with you. Instead of letting them shut you out, simply email or better yet, call, and in a confident and compassionate tone of voice, tell them:

“I see that your payment didn’t go through and I’d like to talk with you about how we can get this taken care of.”

If you sound relaxed and confident they’ll feel reassured and you’re much more likely to create a positive outcome (hint: that means YOU getting paid!).

Tip #2 Know In Advance What Your Limits Are

When you discuss the situation with your client you’ll want to know in advance how far you’re willing to flex, how long you’re willing to wait and whether or not you’re willing to continue working with them until their payments are caught up.

At the beginning of your conversation, clearly indicate that you HAVE limits. Doing so will help you feel that you are standing in your power and are not helpless or a victim of someone else’s money drama.

For example, start your conversation by asking them what happened and what their plan is for correcting the situation. Suggest that they make a payment today, with you on the phone, even if it’s for a fraction of what they owe. At this delicate point, intention and consistency is more important than the actual dollar amount.

If your client is feeling like a victim of circumstances and isn’t able to make a commitment, then it’s time to let them know that while you understand they are in a tough spot, asking you to wait compromises your relationship and ability to create the results they want. Stand firm and ask them to creatively brainstorm ways they can create some ready cash. Trust me, if their LIFE depended on it, they would find the money!

Tip #3 Stand Strong — Your Client Is Looking To YOU As The Leader In This Situation

Always assume that this situation is temporary and that your client has every intention of paying. Usually this is the truth, and they just need a little support, a few extra days or some creative ways to get back on track. If you’re there as their advocate and collaborating together, their embarrassment will turn into relief and they’ll thank and appreciate you for your help and support. Just remember, THEIR payment dilemma is not YOURS to take on. By you standing in your power as leader, you’ll help your client stand in their power too, even when they initially didn’t feel they could.

While Client Payment Issues Aren’t Personal, They ARE An Opportunity For Personal Growth…

Experiencing the occasional client payment issue is a fact of doing business. If you’re experiencing this situation more than occasionally then it’s time to take a look at why you’re attracting these situations into your life. Whether they happen to you rarely or more frequently, each time is an opportunity for you to stand in your power — with compassion — and gracefully negotiate an outcome that’s a win-win for both of you.

Plan your business

Hi My Friends,

have you thought about what your
business is gonna look like at
the end of the year?

Do you have any plans on where you
are going with it?

Whatever it is, it is important to
for you to know which direction
you're heading towards - For if you do
not know where you are going, you
may not end up anywhere in your business.

Here's are some tips to get you started.

1. P = Pinpoint your destination.

Write up a plan of things that you
need to do and the timeline that you
need to complete it.

2. L = Leave Your Excuses Behind

There are FAR TOO MANY people all too
happy to provide a reason to why they
cannot do something. Why they cannot
make money.

Don't be one of them (there are plenty,
your spot is already taken.). Write down
all your “Yes” reasons and leave the
whining to the majority.

3. A = Activate Your Avenue

There are so many types of business
models. And you do not have to make
money the same way others do.

There are a lot of unanswered
questions and problems in different
niches.

If you can answer them clearly and
specifically, you'll be amazed at the
momentum you gain just by
solving other people's problem.

4. N = Navigate the Narrows

You need to have a narrow focus. Yet
you don't see a lot of people concentrating
solely on those things. They get caught
up in the latest fad.

What does it REALLY take to make money
online? 3 things : a. Traffic. b. List.
c. Conversions.

Just focus on this system and go simple
and you'll win big.

5. S = Success is NOT an Accident

Your success will be up to… You.
You will not wake up tomorrow with
money in your inbox without having
done something.

And that's a fact.

Others have done it. So, why not you?

Reasons Why People Will Buy From You Over Your Competitors

Reasons Why People Will Buy From You Over Your Competitors

6 Reasons Your Prospects Will Choose to Become Your Customers

1. Their experiences with you. Your prospects will judge your worthiness based on how you make them feel. This includes how well you communicate, your content “depth,” your website’s quality and much more. Your prospects will also be more likely to engage in “conversations” with you when you allow them to interact in ways they prefer (i.e some may resonate with a blog post while others are more engaged by video or audio content). And always remember you are marketing to people first so build the human bond by remembering personal details and listening carefully.

2. Your product or service benefits. There are two basic reasons why people purchase anything – to increase pleasure (e.g. glowing health, freedom, popularity) or decrease pain (e.g. stress, financial problems, poor health). Therefore, focus on your product or service’s most compelling benefits as you communicate with your target audience – then, make sure you deliver on your promises. Be specific.

3. Your trustworthiness and reputation. Protect your good name and do everything in your power to ensure that your customers, prospects, friends, employees, and colleagues view you as a person of value. Keep in mind that your credibility, plausibility, and truthfulness will also win you far more customers than exaggerated claims and over-the-top promises.

4. The value they receive. Although most consumers are price-conscious, the vast majority do not consider price alone when making their buying decisions. Rather, they consider value: the difference between what something costs and its worth to the buyer. What does value look like in the social media world? Answer: great content, expert advice and personal connections.

5. Make transactions easy, safe, and secure. People are more likely to hand over their money when they perceive the risk as minimal. It’s best to reassure potential customers with robust guarantees, a solid privacy policy, and secure payment procedures.

6. How well you articulate their most pressing concerns. To market effectively you must get into your prospects’ heads. Listen carefully (and social media forums and blogs make this very easy) to your target audiences’ expressed opinions and feelings – particularly as they relate to your products or services – and be sure to address them directly. Research the marketplace to discover new trends and golden opportunities that you can leverage to benefit your business.

Most importantly – especially in the social media marketing environment – remember that the superior online and offline marketing happens when entrepreneurs are willing to put themselves out there and build genuine human connections. Social media marketing is not about quantity; it’s about quality. It is not just about long lists of “followers.” Rather, it begins with a sincere desire to grow and nourish genuine relationships and doing whatever it takes to ensure they happen. If you do this, the money will follow.

Turning Strangers Into True Friends and Fans

Turning Strangers Into True Friends and Fans

“You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you”. Dale Carnegie

Even though social media sites make it much easier to develop connections – a cornerstone principle for all sound marketing systems – cyberspace “followers” are not the same as cyberspace “friends.”

If your ultimate goal is to use social media marketing sites to grow your business, then it’s imperative that you turn followers into real friends – and that requires a genuine connection.

No matter how tempting it is, don’t do the opposite and mistake illusion for reality. Go the extra mile and do what’s necessary to strengthen, not weaken, the “human bond.”

How Do You Turn Strangers Into True Friends and Fans?

First realize this is not an event but a committed process of building relationships and rapport with your targeted audience… one which helps them to know, like and trust you. When done correctly, it provides the opportunity for online business owners to achieve their ultimate objective of acquiring and retaining loyal and profitable customers.

For some of you, the conversion “journey” will be a straight and speedy highway directly to a sale … but the vast majority must be prepared to take a slower, more methodical route.

In order to achieve this, you’ll need to create an online environment that makes your audience feel welcomed in a warm and sincere way and makes it easy to take action.

It’s similar to inviting people to your homes. I’m sure that most of you greet your guests at the door with a broad smile, handshake or hug; offer them something to drink or eat; suggest they sit in the most comfortable chair; etc.
You don’t bombard them with stories about how great you are; ask them to lend you money or borrow their car or leave them on their own to wander aimlessly around your house. This may seem like a far-fetched illustration, but hopefully, you get the idea.

Here are just some of the ways you can transform your followers into genuine friends…

• Acknowledge personal details – “ping” them on their birthdays, ask about their families and share stories about your own, offer to help them with a personal problem, etc.

• Discover the topics your followers are passionate about and mention or discuss them in your online conversations

• Provide them with warm introductions to likeminded friends and colleagues

• “Re-tweet” their “tweets” (when appropriate)

• Comment on their Facebook status

• Mention them in your blog posts and link back to their sites.

Once again, social media marketers who have with the right mindset, recognize that it’s not about numbers – it’s about people. And if you help enough of them get what they want, you’ll get what you want as well.

And remember that once you start developing your list of true fans, treat them like gold as they will not only continue to buy from you but will refer others as well.

7 Simple Productivity Tools

Here are 7 simple but effective productivity tools that can help
you save time and get things done:

1) Your Planner

Of all your productivity tools, your planner is one of the most
important ones, because it's something that you'll use every day to
get things done.

Productivity often comes down to having a clear system to
capture, organize, prioritize, plan and take action on all the
projects, tasks and activities that you need to get done each day.

A good planner can make a big difference in your results, but
even a simple blank notebook can do wonders if you're used to
keeping everything in your head.

If you want a proven software planner for Windows that can help
you get organized and take control of your time, you'll want to
check out Achieve Planner:

2) Dry Erase Calendar

You may also find it helpful to buy a large dry erase calendar
and hang it in a prominent location in your home or office.

A wall in your office, the kitchen or a frequently-traveled
hallway are good locations.

On this calendar, you can mark down important activities and
commitments for all members of the family.

For example, you can record your kids' activities, your own
meetings, doctor and dentist appointments, special functions,
etc. You can plan a week ahead of time, or even a whole month at
a time.

After each event has passed, erase it so you have a clear,
at-a-glance view of the things coming up next.

3) A Password Manager

If you use a web browser and need to keep track of passwords for
different websites (who doesn't?), then a password manager can be a
BIG time saver.

In case you are not familiar with this kind of software, it's a
tool that helps you keep track of your online passwords so you
don't have to remember them off the top of your head or use silly
little passwords that are easy to crack.

The best password managers even auto-fill the login forms for
you so you don't even have to type the passwords yourself.
A very popular and well-known password manager is RoboForm:

4) Reminders and Alarms

Many of the email, planning and organization software programs
available today offer great little settings that can remind you of
important activities.

You can schedule everything from birthday and anniversary
reminders to notes of encouragement for yourself!

Or, you can use a reminder service. There are also reminder
services out there that are absolutely free to use. You simply sign
up for a free account, set the dates and activities you want to be
reminded about, and they will send an email notification on the
date and time you specify.

This is a handy tool worth using if you need help remembering
activities and special occasions.

One popular service is www.MemoToMe.com; or try an internet
search for "reminder service."


5) "Text Replacement" Utilities

This is another little productivity tool that can save you a lot
of time and effort. It works great for common email replies,
signatures, quotes and lots of other boilerplate text that you may
need to type.

I recommend that you check out, Direct Access which reduces time
consuming, repetitive tasks through the use of abbreviations for
text replacement and application launching.


6) Outsourcing Services

If your daily schedule is packed full of chores and obligations
that you can't seem to pare down or delegate, consider outsourcing
some of them to individuals or companies that can help.

For example, if you find that you spend a lot of time nagging
your spouse to do the yard work (or you're forced to do it yourself
and it poses a real drain on your time and energy), call a few
local landscaping companies and check out their rates.

Do the same for housecleaning services, dog walkers, grocery
delivery services, and more.

You might think these services are too expensive, but you'd be
surprised at how inexpensive they CAN be.

Of course, you're going to have to decide if the costs are worth
the extra time you get by using these services. It all depends on
your budget and time commitments.

You might also consider a 'virtual assistant' to help you with
errands and other computer-related busywork.

7) Organizational Tools

If you spend a lot of time hunting for things you need because
you're swimming in a sea of clutter, consider investing in a few
good organizational systems and tools.

Once again, this probably will involve some extra expense at
first, but the extra organization and peace of mind may well be
worth it.

All of these tools may seem overly simple, but don't be
fooled! They can go a long way toward helping you save time,
be more productive and balance your life activities.

The "Acid Test" of Listening

The "Acid Test" of Listening

Paraphrase Your Customer's Words

The customer is only sure that you have been listening when you paraphrase what the prospect has said and feed it back in your own words. This is where the rubber meets the road in effective listening. This is where you demonstrate in no uncertain terms to the prospect that your listening has been real and sincere. This is where you show the prospect that you were paying complete attention to what he or she was saying. Paraphrasing is how you prove it.

Question for Clarification

When the prospect has finished explaining his or her situation to you, and you have paused, and then questioned for clarification, you paraphrase the prospects primary thoughts and concerns, and feed them back to him or her in your own words.

Use the Right Words

For example, you might say, "Let me make sure I understand exactly what you are saying. It sounds to me like you are concerned about two things more than anything else, and that in the past you have had a couple of experiences that have made you very careful in approaching a decision of this kind."

Feed it Back Accurately

You then go on to feed back to the prospect exactly what he or she has told you, pausing and questioning for clarification as you go, until the customer says words to the effect of, "Yes, that's it! You've got it exactly."

Earn the Right to Sell

Only when you and the customer completed a thorough "examination" and have mutually agreed on the "diagnosis" you are in a position to begin talking to the customer about your product or service. In general terms, this means that you can not pull out your brochures and price lists and begin telling the customer how your product or service can solve his problems or achieve his goals until about seventy percent of the way through the sales conversation. Until then, you have not yet earned the right. Until then, you don't even know enough to begin an intelligent presentation without embarrassing yourself.

Be a Good Listener

The more and better you listen, the more and better people will like you, trust you and want to do business with you. The more they will want to get involved with you as a person and the more popular you will be with them. Excellent listeners are welcome everywhere, in every walk of life, and they eventually and ultimately arrive at the top of their fields.

Action Exercises

Here are two things you can do immediately to put these ideas into action.

First, remember that your first job in the sale is to get the customer to like you and believe that you understand his situation. Paraphrasing is the way you accomplish this.

Second, be sure that the customer agrees with you completely when you feed back his concerns to him. Only then can you really start selling.