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Why price should never be a selling point of your business!

As entrepreneurs, we're all in 'business' to do 'business'. This is just a basic fact of life and I know absolutely no one who has started his or her own company in order to deliberately lose money! While this (unfortunately) might be the case when the bottom line 'bottoms' out, all business owners start off with high expectations and resolutions on how they'll become successful.

So, we venture off on the long and sometimes arduous journey to build our network of solid, paying clients to keep our business viable, and then WHAM! We get hit with a dose of cold, harsh reality when one of our first potential clients says those dreaded words... "You charge WHAT to do THAT?" As you're scrambling to find the right words to justify why your price is set at what it is, you've just lost your credibility in one fell swoop. Want to know why?

It's NEVER about the price! And it's all about value!

Are you shocked to read that line? You shouldn't be. Early on in the start-up phase of my business, Gair Maxwell, a very effective seminar leader/guru suggested that I read Jeffrey Gitomer's "Little Red Book of Sales Answers", because ultimately we entrepreneurs are our 'own' salespeople and need to know how to 'sell' our business effectively. That has to be one of the best pieces of advice I've received and I devoured this book! And along the way I learned that it's never about the 'price' you charge - it's about the 'value' you have to offer to your prospective clients that matters more.

You need to tune in to the station called "WII-4FM" - the station that clients listen to - the 'what's in it for me" direct hotline that gets them listening to you. You need to find out first what area they REALLY need your services most for i.e. what stress relief you can provide them with by solving some of their dilemmas. This involves listening to what your clients are telling you what they detest most about doing in their business, determining whether you can provide a service to help them, and then telling them that you'll take care of it - and mean it! It's called 'listening' and you need to learn to do it well.

It's all about two factors - being a great listener and building trust. You need to convey your sincere desire to help your clients and stand by the words you use. Never make false promises and then not deliver because that will kill your credibility faster than a speeding silver bullet to the heart. Follow up on sales calls/emails promptly. The longer you wait, the wider the door opens for a competitor to come marching in and woo your potential client away.

I love the phrase from the movie "Field of Dreams" where they say, "If you build it, they will come." If you cultivate a practice of being open, honest and trustworthy with all people whom you come into contact with, the clients WILL come. Plus if you follow it up by providing consistently great service coupled with reliability, they'll tell THEIR friends and business colleagues as well.

Plus once you've established yourself as a "get it done right the first time" person, price will NEVER be an issue. You will have indelibly inked your name and business in the minds of your satisfied customers forever, which in turn, will bring you increased sales and more personal satisfaction into your company's worth.

So, the next time someone says "You charge WHAT to do THAT?", respond quite firmly "Yes, I do and here's the value I bring along with that price."

The bottom line of your business will be kicking up its heels... and wearing a lovely 'black' outfit minus the 'red' dancing shoes!

"When mere words are not enough."

According to Wikipedia, the definition for the word tagline is: "a variant of a branding slogan typically used in marketing materials and advertising. The idea behind the concept is to create a memorable phrase that will sum up the tone and premise of a brand or product (like a film), or to reinforce the audience's memory of a product. Some taglines are successful enough to warrant inclusion in popular culture, often becoming snowclones." I'm not going to get into what a 'snowclone' is in this article but I am going to talk about why your tagline is very important in showcasing your business. Some people refer to their tagline as a 'slogan' - either way, consider it as 'eye' candy for promoting your business.

Lots of business owners believe that if they use words or phrases such as 'best prices in town'; 'fastest service'; or 'improved product' and the like that their company will stand out from the crowd. WRONG! Everyone truly believes that their business is the 'best' but you need to convince potential clients why indeed you are the 'best'... and you need to do this in as few words as possible. This is why your tagline is one of the most important series of words you'll ever write as it can either make or break your sales pitch.

First, what do you believe in your heart that makes your business unique from your competitors. What added value will they gain from engaging your company? It should never focus on price as your competitor just might 'undercut' your rates if they're business hungry (or unscrupulous and yes, there are companies out there that are!) Let's take ice cream as an example. They are as many manufacturers out there making ice cream as there are flavors. So, what do they use as taglines to make you buy their specific brands? Here's a listing of 3 of the brands that came to my mind when writing this article. Can you tell which tagline matches the following companies - Chapman's, Haagen-Dazs and Scotsburn:

1. "The Dairy Best"
2. "For the kid in all of us"
3. "Made like no other"

Each one of these taglines is great but one of them resonates more to me personally and that's the one that states "Made like no other". The first two taglines are effective but they're just playing with words... literally. The third tagline gives the suggestion that there's something unique and different about their ice cream. Something that perhaps is worth my buying their product at least once just to see (and taste), if indeed their brand IS made like no one else's.

Do you see my point? You need to create a tagline that entices your clients to investigate further into your business and instigate a dialogue with you. Make them want to learn more about what you 'do' and once you've piqued their interest, they'll start to reveal more about what they're looking for as well. Once a dialogue between you and a new client is opened, you stand more of a chance to engage them fully and then you can convince them that you are, indeed, the 'best' person to hire for that particular job.

What's the 'bottom line' here? Make sure your tagline grabs attention, is snappy and short 'n sweet. That's why I've changed my own tagline, as it just didn't reflect what I do 'best'. My original tagline read, "Providing administrative business solutions virtually", which said absolutely nothing about my high level of proficiency in providing exemplary proofreading/editing or writing services. It now reads, "When Mere Words are Not Enough". Straight, short and to the point.

Oh, just in case you're wondering whose slogan fit which business, the answers are:

1. Scotsburn Dairies
2. Chapman's Ice Cream
3. Haagen-Dazs

Surprised? Now you know why that tagline is so important.

Happy eating ;-)!