Monday, December 31, 2007

Elements of effective pricing

effective being the most money you can probably get and preserving having that person willingly pass your name around and come back themselves for more.

that gives you a spectrum to choose from, the immediate money being ( or seeming ) far more important than continuing purchases from this person ( like, when ? if ? how likely ? ) or having them gladly pass your name around.

that balance is for each person to weigh, and then it changes for folks month to month and year to year. Your best guess here is all you get. We all guess how to balance the two needs.

Survey what slipcover buying folks are going to hear on the phone when calling your competitors by calling yourself first, all the numbers listed in your local phone book. Fib and fake it, get those facts. Ask in person if you prefer, go shop. Business slow ? Best time is now.

Ask not only price but policy. How long ? Is COM allowed ? Ask if sales are common, and when. Ask what is included what is add on, whether they work in the home. Hone your skills calling the folks that matter least, the ones farther away.

Partricipate in the survey, soon to come, here. Karen will tell us about it.

Develop questions. Develop your own questions about why the final last right pricing seems ellusive to you. Those are good facts in themselves. You may never sort all the answers but do have the questions. The questions tell you how flexible you need to be in your area.

A good example of a relevant question that makes me wonder about what goes on in my own area: stores pump up labor then run " fabulous " sales on labor. How does that impact me ? I may never know, but I better keep asking myself to wonder.

Let's talk about the questions, the answers are hard to identify, but let's identify the questions. Who picks up furniture, who drives far from home to do this ? Who are the local players ?

The best price you can choose to give is a price that you can live with, and that the customer is feeling good enough about to call you back again and plan more, especially if enough folks aren't finding you.

A lost job due to what is judged to be a too high price is neither right or wrong, but it may be more convenient or less convenient, depending on when it happens. A lost job is somethimes not only a lost paycheck but a lost chance for good referals or a good new unique experience.

Giving up something on price is not without compensation when you at least get the job. This isn't as negative as it may sound, your paid for advertising to a cold market may be as costly as what you choose to underprice, and that cold advertising buck shot can be ineffective even once paid for.

Underpricing is a choice, especially when you are new feeling out your market, if the phone isn't ringing as much as you'd like. It's an aggressive strategy.

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