Pricing

Strategies to Grow Your Business

Growth can come in many different forms (even in pruning… more on that another day). If you’re planning to grow your business this year you need to get very clear on the HOW. How are you going to grow? That can be the overwhelming part, so let’s simplify it! There are three easy growth areas to consider.

Volume - Increase the number of sales you make Volume is all about the quantity. You want to sell more of the thing you already do. This strategy usually involves acquiring new customers which can be costly because it requires more spending in marketing and getting new customers in the door. Be sure you are creating lasting customers and not one time customers.

Price - Increase the price of your service If you want to increase your prices you need to be sure that your value aligns with the price increase. The value you deliver should out weigh your price. This results in delighted customers! If you’re not comfortable with a direct price increase think about how you could add value, then increase the value and the price. Is there a way to enhance the customer experience (this is golden)?

Services - Increase the number of services you offer Adding new services is a great way to increase sales. Figuring out what to add can be simple, but many businesses don’t do it. What is this simple step? ASK. Simply ask your current customers what else you can help them with. What are their biggest frustrations? Now figure out how to solve their frustrations.

These three strategies can be used alone or together. But remember, Focus is key. Depending on your size, your team, and your goals, you should only focus on one to two things at a time. Focus is what gets work done!

What are you going to do to grow your business this year?

If you’d like to grow your business but you’re not real sure where to start, contact us for a free consultation, and we’ll see how we can help you reach your goals.

The Smartest Business Decision I Ever Made

A few years ago I was working up a proposal for a prospect. This particular proposal was for designing a new accounting system and documenting the process. This type of work is actually pretty easy for me and I love doing it (yes, I’m a nerd). I decided what I would charge for the project and put the proposal together. And then I presented it to my “Value Council.” What is a Value Council? For me it’s a group of professionals that help me construct valuable proposals and price them accordingly.

When I first started my business I had a hard time pricing new projects. It was easy to get in the trap of thinking about a price because the work is easy, it may not take long to complete, or I’d done this this type of work many times before. But my thought process was wrong. It’s not about ME. It’s about the CUSTOMER. A value council can help you see that, and help you price for it.

So how does it work? I meet with my value council before I send out a new proposal. This can take anywhere from 15 minutes to 1 hour, depending on the complexity of the project. Meeting with them became very valuable because I was forced to answer questions like:

  • If this work is easy (like I said above) why are they hiring you and not doing it themselves?

  • Do you think the prospect cares if it takes you 5 hours or 20 hours? No! And just because you can get it done faster doesn’t mean it should be cheaper. They are buying your value, not your time.

  • Since you’ve done this work before, don’t you think that gives you more knowledge to serve the prospect better? If so, shouldn’t they pay you for that knowledge.

Having someone make me answer those questions helped my business tremendously. They have helped me see the value in what I do AND get paid for it.

I would highly recommend every business owner forming their own value council. Consider asking your CPA, mentor, or someone you trust. Then see how your bottom line thrives!

If you found this valuable and would like more information contact Joy at joy@lizottecpa.com