Set your price, charge it, and stand behind it

2010 Update: I made the decision to bring Say “Alaka‘i” here to Talking Story in late May of 2010 when the Honolulu Advertiser, where the blog previously appeared, was merged with the Star Bulletin (Read more at Say “Alaka‘i” is Returning to the Mothership).

Therefore, the post appearing below is a copy of the one which had originally appeared there on January 29, 2009, so we will be able to reference it in the future when the original url it had been published on is no more…

Hibiscus

Set your price, charge it, and stand behind it

Had an interesting conversation with a local businessman recently about pricing, and all the variables which go into your decision on pricing a product or service.

There are the obvious ones, like covering costs and getting some kind of a return on your investment, but then there’s that great equalizer, at least for the vast majority of business people who have not yet achieved the euphoria of a winning brand’s monopoly, and that equalizer is supply and demand.

However, an overly obsessive concern with supply and demand can make variable costs and expenses weigh much too heavily in your decision-making. You’ve got to ride any ebbs and flows with more confidence, knowing your pricing decisions were sound in the first place.

Talking about when the balance scales of supply and demand shift —in either direction— and coming up with changes in your pricing is

    a) Too complicated when it doesn’t have to be, repeatedly pulling your attention away from other growth pursuits

    b) Completely at odds with getting your own staff to believe in, and understand your value equation, so they represent you well

    c) Extremely annoying to your customer: For example, think about how you only get “a deal” when you are a brand new wireless telephone buyer, and not when you are a long-time loyal customer (unless your plan is up for renewal). Whoever got the whole industry to adopt those practices should be ashamed of themselves.

We who sell goods and services have trained our customers to game the system. We have trained them to deny our right to make a profit —and thus make a decent living for ourselves as their fellow human beings— so they can get some wildly unfair deal when we are down.

Let me propose a better way. Set your price, charge it, and stand behind it.

Set your price

Do I propose you ignore supply and demand? No, not at all. I simply propose you deal with it just once, and exceptionally well during that one time; during the construction of your business model and business plan. If you have a sound business model, there will always a customer for you; if not, you didn’t have a sound business model to begin with.

This past Tuesday’s blog (S-e-l-l can’t be a 4-letter word in business) assumed that you already had a customer in hand, one who was ready to buy, and who needs you to make the buying process easy and enjoyable, but what about when they truly are “just looking” and still comparison shopping?

In both cases, price needs to be just slightly less than perceived value. What you need to concentrate on is the perceived value, and figuring out if you are willing, and able to deliver it at a decent profit for your efforts (the ROI thing). Second, you must remember that every winning business is in the service business ”“ every single one. I cannot think of a single product that comes without necessary service in its delivery, and the better your service, the more you can charge, for service becomes the added value to the product.

Barter may be making a pretty decent comeback (love the concept), but even those who trade and barter set their price and stand behind it so there is a transactional number which makes things easy. And know this: There is leadership in pricing too. Leaders know their worth, and they state it proudly.

Charge it

Drive through Waikiki right now, or stroll through one of our shopping malls, and there are 4 lousy letters that yell at you:


Window Dressing

Get those “For Sale” signs out of your window (literally – trash them), and clear their negative self-coaching out of your attitudes (figuratively, and for whatever you sell). You never want to be “for [discounted] sale” no matter what your product is. If you must post a sign, write one that says: “No loss-leading prices here; we charge what we’re worth, and you deserve to have our value, for you are worth us being better too.” Get that attitude out on your sales floor, in your telephone conversations, and in every other presence you have internally and externally.

Then get to work with whatever product knowledge you must teach to every single person on staff so that they fall head over heels in love with who you are (as a business), and what you do you (as a service provider). Champion the love and devotion; coach the sharing of it. Don’t hire anyone who cannot provide great customer service from the primary standpoint of they themselves being one of your most fanatical, loyal customers too. When they “sell” they need to be sharing their product knowledge and adoration, enrolling your customer into their personal fan club.

Stand behind it

If you can’t stand behind the prices you set, honoring their integrity, how in the world can you expect people to pay them, and honor your integrity with setting them too?

The easiest way to stand solidly behind your prices is to illustrate your worth.

If you get to work on putting yourself in the customer’s shoes, focusing your intention where their attention is, you will figure out what is valuable to them about what you sell, and what features you must “put on stage” basking in the limelight. That’s product. Then, service is what you offer as the added extra that wows them, and gets them to stand up, cheer for you, and yell “Hana hou!”

No more discounting. No more sale signs. Discounts and sale signs tell a customer you screwed up with your business model. Discounts and sale signs get a customer to wonder about how else you might be ripping them off.

Do mistakes happen in business modeling and sales projections? Sure. The difference is what you do about them, and parading them in front of paying customers is a lousy strategy.

You are better off just giving away whatever you have to liquidate as promotional goods or to charity, helping those in your community (when they are asking for help versus looking to buy) as a way of saying “mahalo for honoring my price integrity whenever you do have cause to buy from me.”

Two steps back for one biggie forward

If you don’t yet have this pricing integrity I am advocating, chances are you have to retrain your customer out of the bad habits you’ve enabled in them.

So retrain us. Ultimately, we all have to have an entrepreneurial mindset as individuals and you’ll be doing us a big favor. (For more on the entrepreneurial mindset, see #3 in this article: The Top 7 Business Themes on my 2009 Wish List).

Be brave. Change the game. That’s what Alaka‘i leaders do.

How creatively could you fill a found hour or two in the afternoon?

A few days ago, we chose an easy hike.

Red Rock Canyon 3

Red Rock Canyon is only about 15 miles from our Say ‘Ohana in Nevada; just 17 miles west of the Las Vegas strip. It made for a great afternoon jaunt for us, as we sought to get out of the house, fully aware we couldn’t stay away from the new puppies for too long ”“ we only had the two hour window between their feedings (see this Flickr photo set for more: Mission 1, 2009: Puppy-Sitting)

Red Rock Canyon 1

Red Rock Canyon was designated as Nevada's first National Conservation Area, and in marked contrast to a town geared to entertainment and gaming, this escape offers a 13-mile scenic drive, more than 30 miles of hiking trails, picnic areas, and visitor center with exhibit rooms and a book store.

Red Rock Canyon 20

From a flyer we got at the gate: “Why are the rocks red?”

“More than 600 million years ago, the land that would become Red Rock Canyon was the bottom of a deep ocean basin. [Hard to imagine, now in the middle of a desert!] Over time, changing land and sea levels resulted in the deposition of both ocean and continental sediments that became the gray limestone found at RRC today. About 180 million years ago, a giant sand dune field formed over what became the Western U.S. Powerful winds shifted the sands back and forth, forming angled lines in the sand. Over time, the sheer weight of the layers of sand compressed into stone. This formation, known locally as Aztec Sandstone, is quite hard and forms the cliffs of RRC. Exposure to the elements caused some of the iron-bearing minerals to oxidize. This oxidizing process can be more easily thought of as a ‘rusting of the sand,’ which resulted in red, orange, and tan colored rocks.”

For more on Red Rock Canyon, visit:
Red Rock Canyon National Conservation Area

Red Rock Canyon 28

The unique geologic features, plants and animals of Red Rock Canyon NCA
is said to represent some of the best examples of the Mojave Desert.

Red Rock Canyon 31

At first you do think everything looks the same, but then you look again and see the contrasts – the camera helps so much with that: Even I was surprised at how many pictures I took, and from interest, not boredom. See my complete photo set (35 photos) on Flickr: Red Rock Canyon, Nevada.

S-e-l-l can’t be a 4-letter word in business

2010 Update: I made the decision to bring Say “Alaka‘i” here to Talking Story in late May of 2010 when the Honolulu Advertiser, where the blog previously appeared, was merged with the Star Bulletin (Read more at Say “Alaka‘i” is Returning to the Mothership).

Therefore, the post appearing below is a copy of the one which had originally appeared there on January 27, 2009, so we will be able to reference it in the future when the original url it had been published on is no more…

Hibiscus

S-e-l-l can’t be a 4-letter word in business

How did “sell” get to be such a 4-letter word in Hawai‘i?

I’ve been stuck in that opinion for a long time too. In my once-held view, “sell” ranked up there with a lot of other four letter words, like “push,” “rude,” “hard” and “yuck.” I didn’t want to be the person who was behind any hard sell pushed upon anyone else; there just had to be a better way to help them buy, and get them to buy.

However make no mistake about it; I still wanted someone to buy.

Much as we now are denouncing consumerism, fully determined to be more realistic and better grounded with our recessionary buying habits, this very simple fact remains: We all have to make a living. The work we do for a living depends on someone being willing to pay us for what we do, and we’ve got to get out and sell it. We’ve got to illustrate our value to the people who are in a position to buy it and pay for it. We’ve got to articulate our worth well, and stand behind what we offer proudly.

This may be one of the toughest things facing those who are in customer service today. We are all getting so “nice,” so understanding of why others are hanging on to their dollars, waiting for rock-bottom discounting, that we aren’t selling, and we aren’t helping customers buy —people who are prospective buyers wanting to buy, and who are willing and able to be our customers.

Do you have customers who are frustrated because buying from you is an ordeal? Is “giving them their space” to “decide for themselves” really a cop-out? How can a customer decide well when they are dealing with limited information because we’ve gotten so poor at trumpeting features and benefits? Not selling is not great when there are people who want to buy and we aren’t making it easy for them to do so.

If you are hiding behind “nice” and hesitating to be the enthusiastic, fully informed and engaged service provider others want you to be, you may be turning N-i-c-e into a 4-letter word too.

That would be tragic.

Following along on Twitter, 500 strong

This morning I noticed that there are now 500 of you following along with my tweets on Twitter: Mahalo nui loa; thank you so much! This certainly is incentive for me to do my very best with keeping it interesting for you ~ the gift of your attention is priceless, and I do want to honor that.

This Twitter follower mosaic is the app-magic of Walter Higgins:

href="http://twitter.com/AnitaBruzzese"> ="0" height="48" src="http://s3.amazonaws.com/twitter_production/profile_images/55671046/AmyCasual_normal.jpg" title="Amy Hennessey" width="48" /> tle="Dan Schawbel" width="48" /> href="http://twitter.com/realwishes"> >

What a joy it would be if there was an app which could do this for our Talking Story community too.

The back-story: I started tweeting back in March, for it seemed to be a talk-story natural: Let’s Talk Story: What’s new with you? and there were other Twitterers on Joyful Jubilant Learning already, syncing up with a connection there: Talking Story and a JJL Twitter Soiree. If you have been thinking about jumping in too, perhaps some of these familiar faces will be your warm welcome as well? If so, follow me @rosasay, and more JJLers @JJLhui.

I am still learning to use the app too; I do think it takes a while, and so we can continue to learn it together. Twitter was part of our Brex initiative for 2008: Braver Experiments [with] Digital Learning.