Posted 9 months ago

Struggling Businesses, Don't Make A Suicide Pact

Here we are, with Q3 of 2020 in the rear-view mirror, THANK GOODNESS.

Only one more quarter left in this 2020 donkey -- but it's going to be an eventful one.

I get asked what I think the markets will do, and the only thing I can really say is "expect the unexpected".

If that seems weaselly to you -- well, it shouldn't because the last six months, as we are all aware, have been pretty insanely unexpected.

But here's something that doesn't HAVE to be unexpected: making further proactive moves to minimize your taxes for this year.

With an entire quarter left, there is still time to make positive moves to save your business on its taxes -- and, of course, on your personal return as well.

But, in the same way that athletes get better in the fourth quarter of their games only because they've done the advanced conditioning work to get there, saving on your taxes only comes through planning.

Struggling Businesses, Don't Make A Suicide Pact
“Despite your best efforts, not everyone wants to be helped. Make a difference where you can and be at peace with the rest.” -Gary Hopkins

If you're struggling to re-open your business, and not getting the traction you need, I have a quick thought for you today.

Because with all of the chaos we're seeing nationally, and in your local marketplace too, it can be tempting for businesses to believe that pricing is the primary factor that could be causing re-open problems (leaving aside lock-down restrictions, etc.).

We might hear consumers say, "Well, I would buy it if it were in my price range." And, that idea tempts many business owners to lower their prices--just to sell more products.

But price reductions more often create more problems than they solve for a business.

That's because they:

* Decrease net profits
* Lead to the purchase of lower-quality products
* Increase customer demands to drop the price even lower!
* Require even more sales to make up the difference in revenue
* Need a larger quantity of products

And, in the end, there will always be someone willing to go out of business faster than you.

Remember this: price is not a benefit. The close of a sale is not determined by the cost of your product. If you truly "sell" your customers and prospects, they will purchase your products/services no matter what price you determine.

That's the plain truth -- and you've probably seen it in your own purchase patterns.

If a customer or prospect doesn't buy -- and they claim the cost had something to do with it -- you can guess they probably wouldn't have purchased anyway.

As a small business owner, and marketer, your job is to sell your products and services. But the actual art of marketing and selling doesn't have to do with the price of the product.

By the time your contacts find out about the price, they should be determined to purchase no matter what the cost.

So, find "real" benefits (value) to sell to your customers and prospects. Help them to see how great their life is with your product or service, and you've got a customer. Point out their current pain properly, and your contact will do anything to get rid of it.

Set your prices and hold fast. If you've marketed correctly, you will still have customers eager to do business with you.

Price gouging is a horrible thing -- but, really, that's a bogeyman that lives more in our heads than in real life.

Charge your worth. Stay in business. You deserve it.

BE THE ROAR not the echo®


Janet Behm