Business Adviser Tano Rebora asks: ‘Are you pricing yourself to failure?’
Our blog’s guest business writer Tano Rebora of Icon Business Solutions, shares more of his advice!
This week, Tano asks, ‘Are you pricing yourself to failure?’
Recently talking with one of our clients brought to mind one of the thorniest subjects ever associated with sales, that of ‘discounting’. Now sure, every client wants the best deal that they can get but why is it always on price?
If your offering is all that it is cracked up to be and you have been in business for a while then, surely, your pricing is appropriate, isn’t it? Or is it?
It may be that your competition has crept up on you. Then what is your differentiator? Does your product now reflect your client sectors requirements at the level that it did?
Who, exactly, are your clients? Is the sales force being aimed at the correct client profile?
If the answer to any of the above is a resounding no, then it may be time to refocus on who your ‘ideal’ client is and what, exactly, makes your product or service so distinctly different.
In this case, however, analysis brought us to a different conclusion.
In order to be at most service to your clients the sales force, whoever few or many these may be, must have knowledge of the businesses that they serve and be prepared to put in the effort to understand what the real issues that these clients face. What they need and want.
Without this effort and the expertise necessary to develop this relationship and the product then the offering will be a “so what?” and be subject to the competitive “me too and cheaper”.
In our opinion, so many businesses suffer eroding profit margins and customer base without analysing the why.
Make time – gather the appropriate information and review in light of the above. You’ll be surprised by what you will find and what a difference this will make to the health of your business.
Tano Rebora, Icon Business Solutions Ltd.