Category: Business

A Definitive Guide to Pricing Strategies

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Pricing products and services such as roof installation can be quite tough. When you set too high prices, you will miss on a valuable sale. When you set prices to be too low, you will miss on stacking up the revenue numbers. Thankfully, pricing doesn’t have to be all that complicated. There are dozens of pricing models and strategies you can implement to help you in better understanding how to get the right revenue numbers for your business. Whether you are a beginner in business or an established veteran, the tactics and strategies explained in this guide can go a long way to make a difference.

Pricing Strategy

A pricing strategy is a model or method that is used to establish the best price for a product or service. It will help you in choosing the best prices to maximize profits and shareholder value while at the same time considering consumer and market demand. Pricing is not always as simple as its definition. There is a lot that goes into establishing the right pricing metrics. Pricing strategies account for many of your business factors such as revenue goals, target audience, marketing objectives, brand positioning, and product attributes. Pricing will also be influenced by external factors such as market demand, competitor pricing, among other factors.

Here are some of the most common pricing strategies you can implement for your business.

Competition based pricing

With this strategy, you will be implementing your pricing based on competition. This pricing strategy is focused on the existing market rate or the going rate for a company’s product or service. It doesn’t take into account the cost of the product or consumer demand. Competition-based pricing makes use of competitor’s pricing as a benchmark. Businesses that compete in a highly saturated space may choose this strategy because a slight price difference may be the deciding factor for customers. With this strategy, you can place your products slightly below your competition, the same as your competition, or slightly above your competition.

Cost-plus pricing strategy

This pricing strategy is solely based on the cost of producing your products or services. It is also known as markup pricing because businesses that use this strategy put a markup on the product to make a profit. The apply this strategy, all you need is to add a fixed percentage to the production cost of your products. This strategy is typically used by retailers who sell physical products. However, it may not be the best fit for the service-based market as these products will normally offer far greater value than the cost to create them.

Dynamic Pricing Strategy

The dynamic pricing model is also known as surge pricing, demand pricing, or time-based pricing. It is a flexible pricing strategy where pricing fluctuates based on market and consumer demand. There are many industries such as event venues, hotels, and utility companies that make use of this pricing method. All they do is apply an algorithm that factors in competitor pricing, demand, and other factors.

 

 

 

 

 

 

 

 

Categories: Business

Leader’s Guide to Effective Change Management

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The only thing that is constant in life is change. Every day, we are reminded of how change is coming. In businesses such as towing service, we always want to succeed. That all makes sense in theory, but when it comes to practical application, to change how we operate or serve our customers is never easy. Research has shown that 70 percent of change programs fail to achieve their goals. This is largely due to employee resistance and lack of management support.

 

Change Management

Change management refers to a systematic approach to utilizing the people within your organization to minimize resistance to organizational change. Although there are tools and models for change, at the core of any strong change management program is your people. No model will work if you continue to let employees be resistant to your ideas.

If you are looking to apply the change, here are some change management models you can use.

Kurt Lewin Model

The Kurt Lewin model applies three distinctive issues, which include- unfreeze, change, and re-freeze. It sounds like the most simplistic model on the surface, but there is a lot more to cover. During the unfreeze stage, you are essentially breaking down the current way of doing business and noting what needs to change. It is important to obtain two-way feedback on what needs to change. Gather the key stakeholders necessary and apply the change. Once everyone has been brought on board, it’s time to re-freeze.

 

ADKAR Model

The ADKAR model breaks down the human side of managing change. The idea means you should work through each letter of the acronym and focus heavily on individuals within your company. At the awareness stage, the goal is to learn the business reason for the change. The desire stage is dedicated to getting everyone engaged and willing to participate in the change. The knowledge stage aims at working towards understanding how to change. The ability stage focus on implementing the desired change.

 

Kotter 8 Step Model

This is a model developed by Harvard Business School Professor, John Kotter. It lays out 8 stages all companies must go through to see effective change management. You start by creating urgency through open dialogue that leads others in the organization to want the change as much as you want. You then form a powerful coalition of change agents in your organization. You create a vision for change and then communicate the vision.

Work on removing all obstacles to pave way for the needed change to happen. Create short-term wins to keep up the morale and show the team you are moving in the right direction. Work on building on the change by analyzing what went well and what didn’t work as expected. You finally anchor the change in corporate culture.

Another model, though not commonly used is Kim Scott Model. It is based on a 7 process which involves listening, clarifying, debating, and deciding on the best idea that will work. You then persuade, execute, and learn on the go.

Categories: Business

Everything You Need to Know About Twitter Marketing

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Twitter is one of the most used social media platforms in the work. Towing services in Jacksonville use the platform to advertise their services to hundreds of potential customers. Twitter users are 2.7 times more likely to purchase a product after seeing it on the platform. Twitter can be a powerful marketing tool for businesses whether new or established.

If you are running an eCommerce business and want to get the best from advertising on this platform, here is how to go about it.

Design an Eye-Catching Profile

Your twitter profile should be optimized to make a great first impression and eventually generate the required sales. You need to have consistent branding across your profile and this means your cover photo and profile picture should be complementary and visually appealing. The profile picture will mostly be a picture of your logo or something that represents your business and does communicate your mission, brand, and message. Use that section to spark the interest of those who come across your profile. You can also use keywords that are relevant to your business and implement a targeting.

Engage with your user base

The greatest thing about twitter is that it is made up of 24/7 interactions and constant activity, as compared to frequent posting from platforms such as Instagram and Facebook which makes these platforms feel like spam. On twitter, you will be interacting with followers and fans who are ideal potential customers. You can send interactive tweets, create polls, see instant results among others. You can also ask questions related to your products and services and keep tabs with what is happening in your industry.

Grow your following

Beyond the followers you have, Twitter gives you an excellent opportunity to grow your audience to increase your brand awareness and even attract more customers to your business. From a technical point, having more followers will allow you to distribute your content quickly and get the word out there about your business. You can garner vital attention by participating in Twitter conversations that are relevant to your business. You can also use Twitter Hashtags to get your business trending. With trending hashtags, you will be tapping into an entirely new network of people who may find interest in what you have to offer.

Schedule your content

If you have time for Twitter, your business stands to benefit a lot. With constant activity, you will boost your brand reputation and keep your business going well. If your tweets and meaningful and appeal to a wider audience, your presence will be felt by a lot of people. Ensure you research on optimal posting times and take advantage of the scheduling of your content to span the entire length of your calendar.

Make the Best out of Twitter Ads

Twitter will offer you different ads based on your objective. The best types of ads are those that focus on awareness as well as website click campaigns. These campaigns are mostly used for promoting brand awareness and generating conversations respectively. You will be billed for every 1000 impressions if you set awareness ads. For website ads, you will be billed for every click to your site.

 

Categories: Business