Sales Strategy

Hi Derric,

The correct price is the one that allows you to maximise the profit you generate from a product line. Too high and demand will be too low. Usually the person with the biggest problem with pricing is the business owner, not the customer.

When you learn to focus on and sell value, not price, the sales process is much easier. You never want to be the cheapest in a marketplace unless you have found a way to be more efficient that everyone else in that marketplace. e.g. Aldi and Costco

How to set a price? Survey your competitors, analyse their strengths and yours and decide where you want to position your product in the quality vs price continuum.

Review your prices on a regular basis. If you're not getting an occasional complaint that your prices are too high then I would suggest they are probably too low. Focus on profit ahead of turnover.

Hope this helps.

Some good suggestions above. I would like to add - start with what you have in your hand. Do you have a background in a particular industry where you already have contacts? Are they likely to need websites? Establish your position, and let people know you are meeting their online needs. If you try and be everything to everybody, you are increasing competitors rather than clients. Ask yourself where the open doors already exist. Create a landing page that targets that industry and then promote it.

Thanks Phil. I've always wondered what the advice is. Surely not every great campaign idea came from a request made by the company! Some unsolicited ideas must have made their way through at times!

there arwe several well understood isses and solutions to 'free products'. These come to mind imemdiately:

 

:

1. Perceived Value Decrease: Customers might perceive a product as lower quality because it's free. The value of a product can be psychologically tied to its cost.

2. Expectation of a Catch: Consumers may be skeptical of free offers, suspecting hidden fees or future obligations, which can deter engagement.

3. Overuse and Abuse: Free offers can lead to overuse or misuse by customers, putting a strain on resources without corresponding returns.

4. Brand Devaluation: Continuously offering products for free can harm the brand's image, making it difficult to charge premium prices later.

5. Low Conversion to Paid Products: Free users may not convert to paying customers if they're satisfied with the free offering or if the transition to paid products is not managed well.

1. Limited Time Offers: Create a sense of urgency and exclusivity by offering the product for free for a limited time. This method can maintain the product's perceived value while still attracting interest.

2. Freemium Model: Instead of giving the product away for free, offer a basic version with the option to upgrade to a more feature-rich premium version. This strategy can alleviate skepticism and pave a clear path for conversion.

3. Qualification Criteria: Implement criteria for who can access the free offer, such as new customers only. This approach helps manage overuse and ensures that the free product reaches the intended audience.

4. Branding and Positioning: Clearly communicate the value and quality of the product, emphasizing that the free offer is a special opportunity rather than a reflection of the product's worth.

5. Seamless Upgrade Paths: Design a user experience that naturally encourages free users to transition to paid versions by highlighting the benefits and additional features of the premium product.

By addressing these problems strategically, businesses can leverage free product offers to attract customers and lead them towards valuable actions without diminishing the product's value or brand reputation.

Rick,

One way to know is by the number of clients you are landing. Are you having any issues getting clients at your current price? If not, your prices may be set too low. This may sound counter-intuitive, but you want clients to question your pricing. This gives you a chance to justify your rates and fees.

The other way to know is by the quality of your clients. Are most of your clients easy to work with or are some of them nothing but headaches? Raising your prices will deter clients that want everything for a small fee. Getting rid of clients will also make you feel better (as you won't always be stressed about them reaching out for changes or revisions at the last minute). Also, if a client doesn't seem like a good fit, turn them down. Start saying "no" and you may actually see your profit margin go up.

In order to expand your customer-base you need to give people a reason why they would want to potentially go out of their way to get to you instead of going to a cafe closer to home. As the others have mentioned, it’s difficult to give suggestions without knowing what you’ve already tried, but here are some ideas that will (hopefully) help you get more foot traffic in your cafe:

1. Corporate and event catering - catering not only opens up another way of doing business, but it can expose your cafe to a wider audience who may bear you in mind for future catering events 

2. Do weekly specials - doing a delicious weekly gets people excited and offers value-for-money

3. Host events - run comedy nights, open-mic, film nights, cork n’ canvas, etc

4. Try to nail one thing on your menu - we all have that one favourite dish that we would travel far and wide to get! Pick and master a household or local/national favourite that will get people talking 

5. Loyalty cards - loyalty cards are a great way to keep people coming back

6. Consider a suburb special coupon - give people in the nearby suburbs an exclusive discount
   
   Good luck :) 

Would love to hear your thoughts @Peter Khalil @Peter Khalil 

It's important not to sell (at any time), it's about educating and connecting with your ideal client. It's about getting to know who they really are, what their problem is and how they will feel when their problem is gone. 

- talk to them about benefits, not features
- have non-salesly calls to action
- share good quality content via socials, email marketing and send them to your website
- consider SEO depending on your budget
- stay front of mind
- don't put all your marketing eggs in one basket, use different online and offline channels
- evaluate your marketing and tweak as you go.
 

Afterpay and ZipPay have become popular in recent years and most established retailers are already set-up or considering setting up the 'buy now pay later' service for their businesses. There is a cost to implementing these models for your business. They do have to make a profit afterall.  Afterpay is the more expensive and payments are 4 equal payments fortnightly ($2000 / 4 or $200 / 4).  ZipPay allows the user to set their own repayments (for example $150 a month regardless whether it was a $1500 or $150 purchase).

Interestingly neither of these providers accept AMEX - only Visa and Mastercard at this stage.  There are other players in the market that offer the buy now pay later service so it's important to do your research.  And ultimately, the one you choose has to fit into your business model. 

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