How Business Coaching Can Stop Owners Giving Away Profits and Cash
A lot of business set their prices based on history or competition. And this is a sure fire way of how business owners give away profits and cash that otherwise should be in your bank account. Let me explain how business coaching can solve this problem.
Where will you compete?
Well, business owners have to decide where they are going to compete – which segments, which locations, and how they will get their product or service to the market (online or a shop locations presence). But when I am business coaching owners, I find that price seems to be the thing that is left behind. It becomes an assumption because the owner never consider the “value” that sits behind a price. Price might be set because that’s what we always have charged, or we can’t charge more than our competitors because we will lose our customers.
But ultimately, a transaction occurs when the customers perceive the product/service as being a fair price in return for money. Owners worry and stress about losing a sale and possibly a customer.
But what if through coaching I could show you how to understand your business value proposition, and how customers perceive value. It’s not always about your competitions’ pricing, but it is always about if you choose to compete on service AND quality rather than price. If you are a small business, competing on price alone is difficult, costly (you need lots of cash to invest into the business) and generally, hard work to make a reasonable return for your time and effort.
In choosing to compete on price and service, how you understand what is valuable to your customer is critical to how you position your store/offer/service. A customer who wants something urgently, (I need it now) will generally pay more. A customer who values an information exchange that is useful, will generally pay more.
What does 10 out 10 mean for your business?
And competing with service and quality means that you run your business accordingly. 1o out of 10 must be the benchmark if you want your business to sing. But it is not an easy benchmark to reach, because at 10 out of 10, each facet of your business needs to exceed customer expectation, not just meet it.
Service that is 6 or 7 out of 10 won’t sustain your business.
Quality and how a customer perceives quality is something that must be sold through an education of your customer. Otherwise, if you don’t educate your customer, how will they understand the value of the quality that you are providing to them. If if your customer does not perceive the quality to be close to 10 out of 10, they probably won’t be an ideal customer.
I can teach you how to better understand the value that sits behind your business’ product or service. Through coaching and business mentoring, it’s a journey for you, the owner, being comfortable with the value and service proposition, then attracting the customers who will pay for the service and value you offer. If you get this equation right, you will have delighted customers who will always recommend your business to their family and friends. And you can’t beat a business based on loyal and supportive customers.