Powerful Pricing Strategies You Need to Use Today

Research has shown there are many weapons business such as towing service McLean va use to increase their sales performance, a sales strategy that has proven to be very    effective. I know you are wondering what this sales strategy is. Well, its what entails strategic framing of prices. It doesn’t matter the market you are operating in, be it luxury or cheap one. What matters is how  you frame your prices that will influence the number of prospects coming to your store and closing on the deals you offer to them. Regardless of the price of your product, focusing on “time” over pricing, can boost your sales and lead to increased customer satisfaction.

Here are some important strategies you can apply

Don’t compete on competitor pricing

You should never compete on pricing. Emphasizing that your products are priced lower that your competitors will always backfire. There is a research that was conducted, asking participants to make a choice between three cameras. A basic inexpensive camera, a more advanced one that is mid priced and then an advanced one that is priced the highest. If you can give your customers options to make decisions based on different qualities and pricing, then you stand to benefit the most. When customers are given the chance to compare products, they tend to focus on the competitive disadvantage, and not your solution’s advantages.

Highlight the ROI of your Product

The only time price should come to the equation when there is an argument should only be when the ROI is being evaluated. It has been proven over time that people will always pay for quality, regardless of the price you set for your products and services. You would not want to compete on price, and same should be the case when it comes to quality. You dont want to compete when it  comes to the benefits that you offer as they are always supposed to be above what your nearest competitor can do. Value is always the key to customer’s heart and value applies more to quality than it does to cost. If possible, consider mentioning any features you will be releasing soon, as these benefits will make your product more desirable.

Position time over money

Regardless of the price of your product, be it $1 or $1000, you need to focus on time over price, as doing so will definitely boost your sales and customer satisfaction. Time might be equal to the promise of frequent and long term use, or just the hours of the buyer’s life they will get back. Research has shown that when you highlight the experience someone will have on your products, that can be key to influencing them to make a purchasing decision. Understand that time is a more scarce resource and once it is gone, it can’t be recovered. Explain to your customers how your product will perform and save them lots of valuable time they would otherwise spend if they acquired an inferior product.

Handle Pricing Comparison

When customer comes with the phrase that price is less everywhere else, that becomes a huge aspect you must handle amicably. When you hear such, you need to focus on how your product is of high quality. Point out on the better quality of your product, the robustness of its features and how you would offer support for the same. This is a strategy that can work especially when you are competing against bigger, and higher priced competitors as well. There will be times people will choose to pay more for a product or service, because of the perceived benefit and quality they are getting.

Easy Ways to Raise Capital for Your Business

capital-managementOne of the most important yet hard tasks that entrepreneurs face when starting out their business is raising capital. Capital is simply the amount of money a business has in their disposal when it comes to spending on various business activities. Raising funds is never an easy task. It requires discipline and determination to meet the targets.

When it comes to raising capital, there are a number of ways one can go about it. Let us look at some of the most viable ways one can go about it in raising capital for their business.

 

Raising it yourself

One of the simplest and most applicable ways to raise capital for a business is doing it yourself. Most founders put aside some capital in terms of savings for their business. It can be saved that arise from your 9-5 job. Others spend some extra time off their work working to save some extra cash for their business.

 

Family and Friend

If you are coming from a family that is well established, a key way of raising capital is linking up with family members for the same. Any business will always involve some level of risk. You might have a great idea but it turns out to be far out of a touch of reality. When you have friends close to you, they may give out their honest opinions besides contributing to your business.

 

Venture Capitalists

VentureA venture capitalist is a form of private equity that is provided at an early stage to an emerging firm that has a high potential for growth. You might have probably come across the term VC from Wall Street. A venture capitalist is a high-risk level of funding that aims at supporting a business with hopes of a high return on investment upon business maturity. The downside of venture capitalists is that they want their invested money to grow so quickly so that they can realize their return on investment. Venture capitalists are able to recoup their money during the initial public offering stage.

 

Angel Investors

An angel investor is normally the opposite of venture capitalists. It is normally a wealthy person who is investing more in you as a person as compared to investing in a business. Angel investors use their own money instead of that of a venture capitalist and ensure that it is well managed. In return, an angel investor gets some ownership in the company in form of equity or some convertible bond.

 

Bank financing

You can get funding for your business through some small business loans. The bank works through evaluating your credit score and deciding on the amount of loan you deserve. The bank also reviews other issues such as your time in business and your business plan to make an estimate on what you are worthy. You will then be required to gradually pay back the loan plus interest. One of the main advantages of getting a business loan is that you will not be giving out any ownership of your company to anyone.