Selling For Profit - Five Steps to Help You Focus on the Profitability of the Sale

1. Make Profit Important Get your people in line. All employees need to understand the rudiments of how they can behave profitably. Yes, you can behave profitably! Help all employees to have a regard for the costs they incur in their daily jobs. Share (in general terms) how much of the cost of running the business is represented in the cost of the product or service you are selling. Understand how easily this is given away due to inefficient behaviours, wastage, getting things wrong, letting customers down and so on. 2. Understand Costs As a business you need to know what to charge to cover all your costs and achieve your profitability targets. Whether you are charging for your time, a product or a service, you will need to know how to recoup all costs relating to making that product or service available and what profit margin will sustain your business. Check regularly what the costs of running your business are and your level of sales revenue. Then you can keep track of your viability as a business. It sounds simple and it is! Costs need to be in focus. 3. Define your Pricing Policy Define a process for managing the prices you charge. Many companies use an upper and lower limit as a guide for market pricing. Communicate clearly to your employees what their limits are and measure performance, rewarding good pricing management. It is too easy to let price slip when giving discounts and running promotions, so let employees know when they can stretch to their limits. Record your companies' adherence to pricing policy and take strong measures if you're letting good habits slip. 4. Find the right Price Position Find a position that sits well with your offer. Use the market as a guide in the first instance but intuitively you will know if your charges are about right for what you offer. You might consider the following three observations whilst deciding your price position: 1. Pricing is not going to differentiate your business. Service or quality will make you different, not price! 2. Prices, which to some look like good value, may look cheap to others. Not everyone likes cheap. 3. Try to be premium or low-cost; it's good to be one end of the scale rather than the middle. The centre ground can suggest no position at all! Find a price position and try it. If it doesn't work don't get stuck, look again and find another position that fits. 5. Understand your 'Hidden' Value Many products and services have become commodities and can become labeled with a price. Some businesses on the face of it do exactly what other businesses do. An accountant is an accountant after all. Not so! You may have to work hard to find differences but there will be some. Try hard to find these differences because you can charge for them! You may be bigger, smaller, faster or more experienced. You may wear the right kind of tie! Change your position to become the type of supplier they need. Your 'hidden' value is actually the ability to find what the client values most about your product or service. You will rarely need to be the cheapest if you can discover the 'hidden' value in your offer. KEITH PLACE DIRECTOROXFORD SALES CONSULTANTSHelping you to be better at selling - whatever you sell Article Source: http://EzineArticles.com/?expert=Keith_Place

How to Price a Product to Make a Profit

If you own a small business, then you can understand how frustration a pricing strategy can get. It appears as though all of your customers are just bouncing from business to business, fishing for the lowest price over everything else. However, if you join in on this race to the bottom, your profits will suffer more than you can imagine. Read on to find out how you can price a product to make a really large profit. Here are 5 steps that you can take to really turn your product pricing strategy around and make your business more profitable than it ever was before: Step 1 - Stop racing your competition to the bottom of bankruptcy. In the history of business, discounters have never lasted very long, because there will always be someone that can do it cheaper and faster than you can. Step 2 - Stop paying so much attention to your competition. Instead focus on providing a huge amount of value for your customers that goes way beyond the price of the item that you are selling. Step 3 - Raise your prices. Someone has to be the most expensive, right? Why not you? Of course you have to use the value in order to justify the increase in prices. People do not pay high prices for fun, they pay high prices for what they get in return (status, high value, scarcity, excellent customer service 24hrs a day, etc.) Step 4 - Use emotional-based selling. never focus on the price. Focus on the customer and what they are feeling. If you can engage the customer's emotions when they are making a purchase decision, you can pull down the skeptical barriers to the sale. Remember that people buy on emotion and later rationalise the sale with logic. Step 5 - Never focus on price buyers. These are your WORST customers. The price buyer only represents about 20% (unless you are in the business of deep-discounts). Focus on the other 80% of your customers instead. These are the people that are more worried about the buying EXPERIENCE than the price. They are also concerned with value, quality, customer service, rewards perks, and many other things that keep them coming back. None of these are related to price. Of course you cannot charge absolutely any price that you wish. Your market will have to justify if the price is acceptable, but by adding a huge pile of value and selling with emotions, you can make a lot more profit than the next person in the same industry. Joshua Black is the developer of the Ultimate Pricing Report, a whole new approach to price strategy for your small business. Download the report here: http://www.product-pricing-strategy.com Article Source: http://EzineArticles.com/?expert=Joshua_Black

Mattress Retail and the Naming Conspiracy - How to Shop and Compare

Unlike most branded retail products, the mattress retail business uses model names without numbers and, because of the totally unrelated names, it is almost impossible to compare and shop models from one store to the next. This "conspiracy" makes it very difficult for the consumer to take advantage of the price guarantees offered at virtually every mattress retailer. The most common question heard by salespeople in the business is, "How can I compare models and shop for best price when the names are different everywhere I go?" The complaint that usually follows is "The price guarantee I see everywhere is worthless. It's a joke. Comparisons are impossible." Accurate comparisons of like models are essential to the effective utilization of the price guarantee advertised by most mattress retail dealers. A typical price guarantee might read, "We'll beat anyone's price by at least 10%." Some retailers will specify that it must be the same brand and model. With the model names being different everywhere, those retailers are able to exempt themselves from ever honoring their advertised guarantee. Some retailers require that the price be an advertised price, but most retailers don't advertise the model names in their ads, and that pretty much let's them off the hook. Consumers cannot shop ads if the model names are not in them, and shopping the competition is extremely difficult in person when the names are different everywhere. It doesn't take long for the consumer to realize that there is a "conspiracy" in place to defeat the use of the "advertised gimmick" called the "price guarantee." The frustration turns quickly to irritation and the consumer is left with nothing but mistrust for the mattress retailer and his sales staff. I don't know how many times a day I had customers tell me, "you guys are just like used car salesmen." The mattress manufacturers would love to have the model names standardized amongst retailers, but the retailers will never let them do that. The manufacturers would save a lot of money, since they have to pay people to come up with new names for every model, every year, for every retailer. They have to tweak the different models in very minor ways in order to keep them slightly different. Those minor differences cost the manufacturers a lot of extra money in modifying the production runs. The retailers want to keep the consumer confused. They want as many different specifications, different fabrics, different tape edges, different stitching patterns, and, most certainly, the different names. The confusion virtually negates the price guarantee because the salesperson can say that the models are different. "This one has a foam encased edge and the one you saw at the department store does not. I can't beat the price, but I can match it." The retailer I spent most of my career with allowed us to beat prices "as long as the models were fairly close." We had to spend a lot of time shopping the competitors to become extremely familiar with the similarities and the differences between the brands and the models in our market area. Unfortunately, that is not the norm for mattress retailers and their staff. Most retailers do not require their staff to shop the competition. The poorly educated staff is forced to "wing it" or to lie to the consumer in order to protect the price points. Some lies can be detected by the consumer and the salesperson loses. Some are so well camouflaged that the consumer cannot detect them and, in that case, the consumer loses. When the consumer loses and discovers the truth later (and he or she usually does) the retailer loses, the salesperson loses, and the industry develops a bad reputation. Trust presents a huge obstacle to overcome. The customer becomes afraid to make that purchase in the future, and the salesperson has a very difficult time getting past the inherent mistrust now permanently entrenched in the customer's psyche. Retailers wonder why the consumer usually takes three years to make that purchase...three years after he knows his mattress is no longer providing a "good night's rest"? The simple answer for mattress retailers would be to modify their game plan and to allow for easier comparisons through the naming process. That change will probably never come. The consumer needs to take charge. Comparisons are actually easier than you might expect. Once you have found a mattress you feel comfortable in and one which supports your spine properly, take notes on the following ten items: 1. Brand name 2. Model name 3. Basic Appearance (firm or tight-top, plush or softer top, or pillow-top) 4. Coil count (queen is the standard used now for quoting purposes) 5. Independent coils or tied together coils 6. Wire gauge (the lower the number, the heavier the wire) 7. Special foams (memory foam or latex foam) 8. Edge support (heavier gauge on the edge or foam-encased) 9. Regular price 10. Sale price These ten items, once noted, and taken with you when you shop the competition, will give you everything you need to find the "comparable" model at other retailers. The "cold white sea" of mattresses staring at you as you enter the store adds to the confusion. They all look pretty much the same, but items 1, 3, and 9 on your list will lead you directly to the correct area. The brand name will match, the basic appearance should be very similar (tight-top, plush, or pillow-top), and the regular price should be pretty close or within two to three hundred dollars (in most cases). The mattresses are usually displayed with the most expensive in the front of the store and the least expensive to the rear of the store. Brands are almost always grouped together. By the time you have approached the correct area, a salesperson will probably have arrived to greet and assist you. If you haven't already noticed signage announcing a price guarantee, ask your salesperson whether they have one and how it works. Bring your notes out and tell your representative that you are looking for ______ brand and ______ model that you saw at _____ store. Indicate the one that looks most similar to the one you selected at the other store and detail the specifications from your notes. Ask which one most closely matches the one you are looking for. If your salesperson tries to deflect you toward other product at this point be wary. Take charge and keep him or her on track. Don't be afraid to say that you are "locked in" to that particular brand. Ask your salesperson to check the specs to make sure that you have matched items 4, 5, 6, 7, and 8. Lie down to make sure that this mattress feels comparable to the one that you liked in the other store. If it feels the same after spending at least 15 minutes on it, then ask your salesperson to beat the price as guaranteed in their advertising or printed policies. Be sure to utilize the "apples to apples" final price including delivery, set-up, pick-up of the old set, and tax in your price beat. Be careful of high pressure add-ons to recoup the retailer's lost margin dollars. If your mattress retailer does not honor the price guarantee for one reason or another, you should ask for the manager to do it for you, or move on to another mattress retailer who will gladly accept your business. Unfortunately, mattress retail dealers are not likely to change their embedded (excuse the pun) naming "conspiracy." Nor are they likely to alter their "loss leader" advertising that is damaging their image, integrity, and standing in the eye of the consumer. The only solution to this dilemma is a more informed, a more detail-conscious, and a more demanding consumer. Shop with confidence, take charge, take notes, make the comparisons, and claim the price guarantee. Your shop for sleep is easier than your fear expects. Ronald Czarnecki, EzineArticles.com contributor and recently published author of "Shop for Sleep and Survive the Bite" offers consumers the first "how to" guide for mattress shopping. The career veteran of the retail mattress world breaks the "code of silence" and uncovers the map to the "good night's rest" we all deserve. For more information visit Ron at: http://www.shopforsleep.com or join him on his blog site at: http://www.sleeplessandtired.com Good night, sleep tight, and survive the bite! Copyright 2010. All rights reserved to Ronald Czarnecki. Article Source: http://EzineArticles.com/?expert=Ronald_Czarnecki