Part of the excitement of being an entrepreneur is often in the creation mode of having a brilliant idea, getting the thumbs up from those you admire, and seeing your concept take on a life of its own. Right? A benchmark of "success" could be in seeing that idea fully expressed with products and services being sold at a profit. However, it's how and if you make the journey from CONCEPT to FULL EXPRESSION which really makes all the difference of whether you succeed or not. It's not necessarily about how great your idea is. With that said it's no wonder that many great ideas never make it out there in a big way. Looking back it's often because the entrepreneur just gave up.
So if you have a great idea and you're passionate about what you're doing, here are some strategies you can use to maintain a high vibration around your project and help keep you motivated and moving forward:
1. Celebrate after each milestone is achieved.
Don't think you have to wait for the end of the journey to celebrate as success will occur at many points along the way. So take the time to acknowledge and celebrate these milestones and you'll stay motivated for longer periods of time. Could be that you've finished building your team, prototype being ready, first investor check has arrived, first order, etc.
2. Stay focused on what's driving you.
Keep constant reminders around of why you're doing what you're doing to help you stay motivated. It's easy to lose site of why you're in business during the rough patches. Also, it helps to have a vision that is much bigger than just making money such as helping the community or healing the planet.
3. Surround yourself with incredible people---ditch the downers!
Gracefully let go of relationships with people who do not know how to support you on your journey. Replace them with people who know how to lift you up, have traveled a similar path and can alleviate your fears, will open doors for you and generally make your life easier.
4. Create a routine that fosters creativity, accomplishments, & manageable tasks.
I find my productivity is maximized and I can keep my vibration high if I break my day down into 2 hour activity increments as well as create a priority list that is reasonable. Part of my time is spent in creative activities with no interruptions, specific revenue generating activities as well as operational tasks. I also include daily breaks and quiet time in the mix. Keeps me engaged and motivated throughout the day!
5. Give yourself permission to do the tasks that you love and delegate what you don't.
Entrepreneurs think they have to wear ALL the hats in their business and work on everything all at once. If you're consistently doing activities you don't enjoy, you'll quickly lose your passion and motivation to see it all the way through. Give yourself permission to focus on those activities you enjoy and are good at and commit to attracting the right people who can do the rest.
6. Respect the learning curve.
Chances are you're traveling down a path you haven't traveled before so in addition to having to make the best decisions for your business, you'll also need to set aside some time to learn about the resources so you can make the best informed decision. It's important to add your learning curve into the equation otherwise you'll always feel you're lagging behind and this could be very de-motivating. Another way to overcome this is to make sure you have people around you who possess the very skills you may be lacking.
7. Take time out for self-care no matter what.
No, you won't necessarily get there any faster if you work nonstop. You'll probably burn out first. Even just taking 15 minutes a day to be still, meditate or just process your day can make a world of difference. This is also a good time to maintain a daily exercise regimen and healthy diet. It's also important to have some down time once a week, no less than once a month. Stepping away will keep you fresh, rested, motivated and more productive.
8. Stay connected, avoid isolation.
It's important to immerse yourself in your industry and to network with peers and mentors. This can be accomplished by "showing up" at various events for direct contact to these people and other prospective resources. Besides the relationships, the exposure to people in similar situations will help you stay connected and motivated. This can also be accomplished with the use of social networking tools. I love Twitter for this reason!
9. Take time to acquire the resources you need.
Struggling for long periods at a time on a "shoe-string" can be tiring and will quickly lead to lack of motivation. Take the time to acquire the proper funding, equipment, etc., before you put yourself too far out there on a limb.
Application of these strategies will help you stay motivated and experience more joy as you're ramping up your business! Maria Simone helps those who are in various stages of planning, packaging, and launching their businesses acquire the resources they need AND STAY MOTIVATED at http://www.passion2prosperity.com
Saturday, April 25, 2009
Friday, April 10, 2009
7 Strategies To Help You Quickly ATTRACT Investors
This week's article is about positioning yourself to become more attractive to capital. If you're not raising capital however, just substitute any comparable resource you desire to have. It still works since the emphasis is on attracting what you need next!
Prospective investors are all around you ---there is no shortage of money. The key is, the more prepared you are, the more compelling your investment opportunity becomes. Raising capital from investors or acquiring the proper resources you need is a right of any entrepreneur and one of the best ways a growing business can assure its success. Learn how to compel others to invest rather than you "chasing" the money. Here are the top 7 things you can do right from the beginning to build value in your business and help you become more ATTRACTIVE to the money. This list is only a guideline and it should not be implied that all these are absolutely necessary to be successful in this process...it just helps to accelerate your efforts.
1. Develop a healthy relationship with money and know that you deserve to have it.
Money is just energy and capital is just one of the many resources necessary to grow your business. If you become too attached to this process or have a sense that your self-worth is tied to how much money you have, you may actually repel investors.
2. People invest in PEOPLE.
Make sure you've taken the time to attract the right mentors and advisors to support you during this process to help you attract the resources you need. There are others who have made this journey successfully before you so find out who they are and attach them to your project somehow. Investors and sponsors are more inclined to put their money into a project with a management and advisory team that has a proven track record. If they've done it once, they are more likely to re-create their success.
3. Do what you can to prove out or VALIDATE your concept.
Includes developing your markets, monetizing some aspect of your business, building a database of prospective customers, forming strategic Alliances and Joint Ventures, and/or obtaining purchase orders and letters of interest whenever possible. Bottom line, investors and sponsors are more inclined to take notice if you can show that there really is interest in your products and services.
4. Develop a Business Plan.
One that illustrates the market you're serving, describes your products and services and details how you plan to get them in the hands of your customers. A plan is also a great visual representation of what you desire to have and that alone will help you begin manifesting whatever you need to make it happen.
5. Obtain as much protection for your Intellectual Property (IP) as possible.
Having a patent, or the opportunity to patent your IP, is generally the most attractive IP opportunity to an investor. If not a patent, make sure you have the opportunity to create future IP such as trademarks and copyrights to show that your products and services will not become obsolete. Protect what you can up front to assure interest from investors but if that's not possible now, make sure you have a plan to do so in the near future.
6. Get connected!
Investors will have a higher degree of confidence and interest in an entrepreneur who knows how to network and easily connect to the resources he or she needs. Join groups that support your agenda, connect with your community, show up at industry related events, tap into the power of social networking.
7. Make sure you are passionate and invested in this process yourself and be able to clearly articulate that to investors. Investors want to know how much time and money YOU'VE invested, how passionate YOU are, how far YOU'RE willing to go with it and how stable YOU are emotionally and financially so that they know you'll have staying power. The more committed you are to making the "journey", the more attractive you will become to investors.
Application of these items will help you become super-attractive to money and other resources! Maria Simone helps those who are in various stages of planning, packaging, and launching their businesses acquire the resources they need at http://www.passion2prosperity.com
Prospective investors are all around you ---there is no shortage of money. The key is, the more prepared you are, the more compelling your investment opportunity becomes. Raising capital from investors or acquiring the proper resources you need is a right of any entrepreneur and one of the best ways a growing business can assure its success. Learn how to compel others to invest rather than you "chasing" the money. Here are the top 7 things you can do right from the beginning to build value in your business and help you become more ATTRACTIVE to the money. This list is only a guideline and it should not be implied that all these are absolutely necessary to be successful in this process...it just helps to accelerate your efforts.
1. Develop a healthy relationship with money and know that you deserve to have it.
Money is just energy and capital is just one of the many resources necessary to grow your business. If you become too attached to this process or have a sense that your self-worth is tied to how much money you have, you may actually repel investors.
2. People invest in PEOPLE.
Make sure you've taken the time to attract the right mentors and advisors to support you during this process to help you attract the resources you need. There are others who have made this journey successfully before you so find out who they are and attach them to your project somehow. Investors and sponsors are more inclined to put their money into a project with a management and advisory team that has a proven track record. If they've done it once, they are more likely to re-create their success.
3. Do what you can to prove out or VALIDATE your concept.
Includes developing your markets, monetizing some aspect of your business, building a database of prospective customers, forming strategic Alliances and Joint Ventures, and/or obtaining purchase orders and letters of interest whenever possible. Bottom line, investors and sponsors are more inclined to take notice if you can show that there really is interest in your products and services.
4. Develop a Business Plan.
One that illustrates the market you're serving, describes your products and services and details how you plan to get them in the hands of your customers. A plan is also a great visual representation of what you desire to have and that alone will help you begin manifesting whatever you need to make it happen.
5. Obtain as much protection for your Intellectual Property (IP) as possible.
Having a patent, or the opportunity to patent your IP, is generally the most attractive IP opportunity to an investor. If not a patent, make sure you have the opportunity to create future IP such as trademarks and copyrights to show that your products and services will not become obsolete. Protect what you can up front to assure interest from investors but if that's not possible now, make sure you have a plan to do so in the near future.
6. Get connected!
Investors will have a higher degree of confidence and interest in an entrepreneur who knows how to network and easily connect to the resources he or she needs. Join groups that support your agenda, connect with your community, show up at industry related events, tap into the power of social networking.
7. Make sure you are passionate and invested in this process yourself and be able to clearly articulate that to investors. Investors want to know how much time and money YOU'VE invested, how passionate YOU are, how far YOU'RE willing to go with it and how stable YOU are emotionally and financially so that they know you'll have staying power. The more committed you are to making the "journey", the more attractive you will become to investors.
Application of these items will help you become super-attractive to money and other resources! Maria Simone helps those who are in various stages of planning, packaging, and launching their businesses acquire the resources they need at http://www.passion2prosperity.com
Monday, March 30, 2009
Abundance Strategies for Business Building-- Thursday Teleclass
If you haven't noticed, the rules of business are shifting.
* Technology has ushered in new opportunities, closed the door on others.
* Consumer buying criteria has shifted, as have the tried and true marketing techniques.
* Competition is being replaced by more conscious biz building strategies.
* Opportunities to create early traction and revenue with limited investment are ABUNDANT.
JOIN ME for a 2-part teleclass as I discuss what's hot, what's not for business.
Learn where to make adjustments so you can THRIVE doing what you love.
http://passion2prosperity.com/passionatebiz.htm < ---- details here
This series is PERFECT if you're a service professional, solopreneur, speaker or entrepreneur
trying to jumpstart new revenue OR desiring to take your current business to another level.
You'll learn with us
* Key elements to help you get into revenue sooner than later.
* Learn to have breakthroughs, not breakdowns as you're moving forward with your dream.
* The power of creating multiple revenue streams to exponentially grow your revenue.
* Reaching the masses without compromising the integrity of your products and services.
http://passion2prosperity.com/passionatebiz.htm < ---- details here
Join me April 2nd --- the series is FREE.
Register today...Only those registered will get the playback recording from the series afterwards.
Ready for step-by-step support? Doors open at http://passion2prosperity.com
* Technology has ushered in new opportunities, closed the door on others.
* Consumer buying criteria has shifted, as have the tried and true marketing techniques.
* Competition is being replaced by more conscious biz building strategies.
* Opportunities to create early traction and revenue with limited investment are ABUNDANT.
JOIN ME for a 2-part teleclass as I discuss what's hot, what's not for business.
Learn where to make adjustments so you can THRIVE doing what you love.
http://passion2prosperity.com/passionatebiz.htm < ---- details here
This series is PERFECT if you're a service professional, solopreneur, speaker or entrepreneur
trying to jumpstart new revenue OR desiring to take your current business to another level.
You'll learn with us
* Key elements to help you get into revenue sooner than later.
* Learn to have breakthroughs, not breakdowns as you're moving forward with your dream.
* The power of creating multiple revenue streams to exponentially grow your revenue.
* Reaching the masses without compromising the integrity of your products and services.
http://passion2prosperity.com/passionatebiz.htm < ---- details here
Join me April 2nd --- the series is FREE.
Register today...Only those registered will get the playback recording from the series afterwards.
Ready for step-by-step support? Doors open at http://passion2prosperity.com
Friday, March 27, 2009
Build A Power Team To Attract Customers, Contracts, and Funding
Starting a business is an exciting adventure but at the time when we need the most support, many entrepreneurs suddenly develop “Lone Ranger” syndrome. Could this be you? This isn’t the time to hide out and think you need to do it all yourself. This is the time to surround yourself with experts who have skills, talents, contacts and access to other resources to help you launch and grow your business. Let others open doors for you as well as become magnets for what you need next.
So the old saying goes "if I only knew then what I know now". I say "why wait to have the experience"?
Avoid the "hard knocks" that people insist on having by building a TEAM of people that have demonstrated success in the areas you're about to venture into. Think about what it would be like to have someone in your life that has been down the same path that you're about to go down, who is freely sharing with you what's in store. You'll be able to plan better, make better informed decisions, as well as save lots of time and money by avoiding the most commonly made mistakes. These are not employees or people working IN your business. These are people who are working ON your business with you and pop in and out as the need arises.
1. What do I call my TEAM?
Make it something formal and professional to lend credibility. I like ADVISORY TEAM or ADVISORY BOARD as it relates to business. Others call it MASTERMIND GROUP, and MENTOR GROUP.
2. Who should be on it?
Here are a few examples of the "profiles" of those who would provide a well-rounded experience:
a. Someone with experience developing a business--- starting a business, operations, experience with acquiring funding, dealt with legalities of having a business, launch, growth, exit strategies, etc.
b. Someone that has demonstrated success in your industry…actually launched or worked with a company that has achieved your desired revenue goals in a similar industry. For example, one of my companies is a fashion accessory company so I sought out the priceless advice of Nick Graham who had founded the very successful "Joe Boxer" brand in 1987.
c. Someone that responsibly represents YOUR desired target market. They can give you feedback and help establish your credibility along the way. For example, my husband’s friend launched an animation company that produces cartoons promoting environmental issues. Former Vice President Al Gore is on their Advisory Team. This relationship has given them tons of exposure right out of the gate, opportunities to acquire large contracts and interest from investors.
d. Someone not related to your business but well-grounded and "wise" in other areas of life. During stressful periods, this person will help give you perspective, make objective decisions and support your desire to have balance in your life.
e. Others who fill in the gaps of your experience such as marketing, media, promotional, and finance. For instance, I’m putting together the platform for a radio program and I don’t necessarily have media business experience. So I surrounded myself with Advisors that do. People that have successfully raised millions from corporate sponsors, and a publicist whose specialty is radio syndication.
3. What to say?
Approach these people and request a short meeting so you'd have the opportunity to ask them some relevant questions about your business that they would completely relate to. Can they validate what you're doing? Did they have similar experiences they could share with you? Is there anyone else they would recommend you speak to? Any special advice they could give you?
4. How to follow-up?
Request that they allow you to check in with them once a month to share your progress and to seek their guidance. People generally will be honored to support you at such intervals and probably won't think to ask for anything in return so money shouldn’t be an issue here.
Not only will they get to help the next generation succeed, the relationship itself will start attracting more resources, customers, contracts and funding to your business as you share who’s on your TEAM with others.
Maria Simone is a transformational business development expert. She’ll show you "NEXT STEPS" for transforming talents & ideas into products that sell for millions, effortlessly attracting investors and sponsors, and manifesting customers with ease. http://www.passion2prosperity.com
So the old saying goes "if I only knew then what I know now". I say "why wait to have the experience"?
Avoid the "hard knocks" that people insist on having by building a TEAM of people that have demonstrated success in the areas you're about to venture into. Think about what it would be like to have someone in your life that has been down the same path that you're about to go down, who is freely sharing with you what's in store. You'll be able to plan better, make better informed decisions, as well as save lots of time and money by avoiding the most commonly made mistakes. These are not employees or people working IN your business. These are people who are working ON your business with you and pop in and out as the need arises.
1. What do I call my TEAM?
Make it something formal and professional to lend credibility. I like ADVISORY TEAM or ADVISORY BOARD as it relates to business. Others call it MASTERMIND GROUP, and MENTOR GROUP.
2. Who should be on it?
Here are a few examples of the "profiles" of those who would provide a well-rounded experience:
a. Someone with experience developing a business--- starting a business, operations, experience with acquiring funding, dealt with legalities of having a business, launch, growth, exit strategies, etc.
b. Someone that has demonstrated success in your industry…actually launched or worked with a company that has achieved your desired revenue goals in a similar industry. For example, one of my companies is a fashion accessory company so I sought out the priceless advice of Nick Graham who had founded the very successful "Joe Boxer" brand in 1987.
c. Someone that responsibly represents YOUR desired target market. They can give you feedback and help establish your credibility along the way. For example, my husband’s friend launched an animation company that produces cartoons promoting environmental issues. Former Vice President Al Gore is on their Advisory Team. This relationship has given them tons of exposure right out of the gate, opportunities to acquire large contracts and interest from investors.
d. Someone not related to your business but well-grounded and "wise" in other areas of life. During stressful periods, this person will help give you perspective, make objective decisions and support your desire to have balance in your life.
e. Others who fill in the gaps of your experience such as marketing, media, promotional, and finance. For instance, I’m putting together the platform for a radio program and I don’t necessarily have media business experience. So I surrounded myself with Advisors that do. People that have successfully raised millions from corporate sponsors, and a publicist whose specialty is radio syndication.
3. What to say?
Approach these people and request a short meeting so you'd have the opportunity to ask them some relevant questions about your business that they would completely relate to. Can they validate what you're doing? Did they have similar experiences they could share with you? Is there anyone else they would recommend you speak to? Any special advice they could give you?
4. How to follow-up?
Request that they allow you to check in with them once a month to share your progress and to seek their guidance. People generally will be honored to support you at such intervals and probably won't think to ask for anything in return so money shouldn’t be an issue here.
Not only will they get to help the next generation succeed, the relationship itself will start attracting more resources, customers, contracts and funding to your business as you share who’s on your TEAM with others.
Maria Simone is a transformational business development expert. She’ll show you "NEXT STEPS" for transforming talents & ideas into products that sell for millions, effortlessly attracting investors and sponsors, and manifesting customers with ease. http://www.passion2prosperity.com
Friday, March 13, 2009
Leno, Fallon, Ellen & Me: Marveling The Twitter Phenomenon
Unless you've been living under a rock, you can't help but hear everyone talking about TWITTER! It's been the topic of all the daytime & late night talk shows and every mainstream media outlet out there.
For entrepreneurs, Twitter has become an amazingly efficient & fun way to quickly build your network and your business.
It's like instant manifestation and I'm going to prove it to you on our next Abundance Mastermind Group call on Tuesday 3/17 at 12pm pst.
Are you Twittering yet? If not, go to http://twitter.com/ to create your own account.
Start following me at http://twitter.com/mariasimone and you'll see what I mean.
Here's what's amazing:
Over the past few months I've used it to quickly build strategic alliances, attract new business ($$), media opportunities, contacts with investors and make very powerful connections to influencers. All of this coming from a place of connecting and supporting of others.
I'm going to walk my Members through the strategies I use to build my business using Twitter. This is not just a "how to use it" session ---There are many wonderful people who share THAT information. Instead, I'll be revealing specific business building strategies.
Want this powerful session for FR^EE? You'll get the next TWO months of Membership FR^EE when you acquire my program at http://passion2prosperitybook.com/
Current Abundance Mastermind Members in good standing: you'll be receiving call-in details shortly.
Join us TUESDAY and you'll notice a difference in your business by WEDNESDAY.
Anyone tell you they "don't get Twitter"? ...send them to this post!
To your success!
Maria Simone
http://passion2prosperity.com/
For entrepreneurs, Twitter has become an amazingly efficient & fun way to quickly build your network and your business.
It's like instant manifestation and I'm going to prove it to you on our next Abundance Mastermind Group call on Tuesday 3/17 at 12pm pst.
Are you Twittering yet? If not, go to http://twitter.com/ to create your own account.
Start following me at http://twitter.com/mariasimone and you'll see what I mean.
Here's what's amazing:
Over the past few months I've used it to quickly build strategic alliances, attract new business ($$), media opportunities, contacts with investors and make very powerful connections to influencers. All of this coming from a place of connecting and supporting of others.
I'm going to walk my Members through the strategies I use to build my business using Twitter. This is not just a "how to use it" session ---There are many wonderful people who share THAT information. Instead, I'll be revealing specific business building strategies.
Want this powerful session for FR^EE? You'll get the next TWO months of Membership FR^EE when you acquire my program at http://passion2prosperitybook.com/
Current Abundance Mastermind Members in good standing: you'll be receiving call-in details shortly.
Join us TUESDAY and you'll notice a difference in your business by WEDNESDAY.
Anyone tell you they "don't get Twitter"? ...send them to this post!
To your success!
Maria Simone
http://passion2prosperity.com/
Tuesday, March 10, 2009
Thinking about lowering your prices?
With all the negative economic news being reported by the media, your first inclination as a business owner may be to lower your prices fearing that unless you do, you won't have a customer segment willing and able to pay your desired prices. Consider that once lowered, however, it may be more of a challenge to raise your prices in the very near future. You're also assuming that your customers can no longer afford your standard prices. In actuality, pricing may not be the issue but rather customers are becoming more thoughtful with their purchases and merely need to be further convinced of the VALUE before plunking down their money. I recommend an energetically more ABUNDANT approach to this. Here are some new strategies and possible alternatives to consider in lieu of lowering your prices.
1. Have a sale or extend payment options.
Maintain your current pricing but establish defined sale periods with beginning and end dates to maintain the integrity of your pricing model but still offer customers a break. Also consider stretching payments over a period of time if feasible. I regularly offer a 6 pay plan with my Protégé program in addition to timed discounts.
2. Bundled offerings or gift with purchase.
Add additional products and services to your core offerings (for no additional cost) to substantially increase the value but without necessarily increasing your overhead. Can you add a "gift with purchase" that doesn't cost you any more money? Digital products & excess inventory items work great with this. Such as a gym offering complimentary towel and locker service for a year with a new membership.
3. Bonus gifts from other providers.
I still chuckle at an article submission site I subscribe to that would send me a 1lb box of fudge from an outside candy company every time I chose A $100 service package instead of a $60 package. Can you bundle with others to provide more value? I offer over $1000 in bonus gifts when you purchase my eBook and audio program at http://passion2prosperitybook.com/ . I created tremendous value for my customer that I did not have to pay for! Win-Win!
4. Rewrite your collateral materials to convey benefits.
This is a good time to review the benefits of your products and services line- by-line to be sure you're communicating maximum value to your prospective customer. One client wanted to lower her prices to attract more customers. Before she did that, I had her dissect her service, list out each benefit and assign a monetary value. This created a paradigm shift when she realized how much value customers were actually getting from her. She didn't lower her prices then, she raised them and customers are still showing up to pay.
5. Offer a sampling of complimentary products or new price point combinations.
Consider building in a new layer of products and services that you can offer for free so that prospective customers can easily experience you before making a purchase. When you sign in to http://passion2prosperity.com/ , you receive 3 free gifts from me. Also consider a new level of product offerings at lower price points without changing your premium price points. Even Starbucks is now offering bundled product combinations.
[Maria Simone is a business development expert with a spiritual twist. She'll show you "NEXT STEPS" for transforming ideas into products, effortlessly attracting investors and sponsors, and manifesting customers with ease. http://www.passion2prosperity.com/]
1. Have a sale or extend payment options.
Maintain your current pricing but establish defined sale periods with beginning and end dates to maintain the integrity of your pricing model but still offer customers a break. Also consider stretching payments over a period of time if feasible. I regularly offer a 6 pay plan with my Protégé program in addition to timed discounts.
2. Bundled offerings or gift with purchase.
Add additional products and services to your core offerings (for no additional cost) to substantially increase the value but without necessarily increasing your overhead. Can you add a "gift with purchase" that doesn't cost you any more money? Digital products & excess inventory items work great with this. Such as a gym offering complimentary towel and locker service for a year with a new membership.
3. Bonus gifts from other providers.
I still chuckle at an article submission site I subscribe to that would send me a 1lb box of fudge from an outside candy company every time I chose A $100 service package instead of a $60 package. Can you bundle with others to provide more value? I offer over $1000 in bonus gifts when you purchase my eBook and audio program at http://passion2prosperitybook.com/ . I created tremendous value for my customer that I did not have to pay for! Win-Win!
4. Rewrite your collateral materials to convey benefits.
This is a good time to review the benefits of your products and services line- by-line to be sure you're communicating maximum value to your prospective customer. One client wanted to lower her prices to attract more customers. Before she did that, I had her dissect her service, list out each benefit and assign a monetary value. This created a paradigm shift when she realized how much value customers were actually getting from her. She didn't lower her prices then, she raised them and customers are still showing up to pay.
5. Offer a sampling of complimentary products or new price point combinations.
Consider building in a new layer of products and services that you can offer for free so that prospective customers can easily experience you before making a purchase. When you sign in to http://passion2prosperity.com/ , you receive 3 free gifts from me. Also consider a new level of product offerings at lower price points without changing your premium price points. Even Starbucks is now offering bundled product combinations.
[Maria Simone is a business development expert with a spiritual twist. She'll show you "NEXT STEPS" for transforming ideas into products, effortlessly attracting investors and sponsors, and manifesting customers with ease. http://www.passion2prosperity.com/]
Monday, March 9, 2009
Priceless Pricing Strategies
The following article was written by my CFO buddy Aisha Jones-Scheffel. There are four basic pricing strategies which can be drawn out on a grid or matrix:
1. Economy pricing: Low quality and low price.
This would be the no-frills pricing, think of Wal-Mart or Southwest Airlines. Compare this to Nordstrom and first class on Virgin Airlines.
2. Penetration pricing: High quality and low price.
This strategy entails initially setting a lower than market price to gain entry into the market. Think back to when the Japanese initially introduced cars into the U.S. market. They were cheaper cars, but with equal or better equality. Now Toyota is poised to become the number one selling car manufacturer in the U.S.
3. Price skimming: Low quality and high price.
With this strategy a company will set a relatively high price initially and then reduce the price over time. Over time, they are able to get consumers at every price point. The perfect example of this is the Apple iPhone, it was originally $499 when it was introduced. Apple is now introducing the second version on July 11th at a price of $199.
4. Premium pricing: High quality and high price.
Every luxury brand follows this pricing strategy, which is keeping the price of a product or service high, so that buyers will favorably perceive it as superior or exclusive. Think of Coach or Bentley or even the Ritz Carlton.
How to use the matrix:
Step One: Determine where you are on the grid. You might have products or services that fall in one or more categories.
Step Two: Determine which quadrants your competitors fall into
Step Three: Determine holes in the market. Do you and your competitors fall under the premium and penetration quadrant? Then, there might be opportunities in the economy and skimming quadrants. What products or services could you introduce to take advantage of these "holes" in the marketplace.
Step Four: Determine if you can have products or services that would fall into every quadrant. For example, Toyota has a Toyota Corolla (Economy), a Prius (Skimming), and Lexus (Premium). H
ow do you know if a change in pricing strategy will be successful? Well you don't know what is going to be successful. The best thing is to do your research upfront before investing too much in a new pricing strategy or product or service. The three biggest questions are:
1. Is there a market for it?
2. How can I reach that market?
3. Do you have the talent and resources in order to reach that market?
So give some thought to your pricing strategy. What is the cost of increased market share, more customers, higher revenue, and increased profits - priceless.
Aisha Jones-Scheffel is "The Doctor CFO." Get her FREE SPECIAL REPORT, "7 Never Before Told Ways to Make Your Practice Stop Bleeding Money (That Has Nothing to do with Insurance or Billing)" and her FREE money management how-to tips at http://www.DoctorCFO.com.
1. Economy pricing: Low quality and low price.
This would be the no-frills pricing, think of Wal-Mart or Southwest Airlines. Compare this to Nordstrom and first class on Virgin Airlines.
2. Penetration pricing: High quality and low price.
This strategy entails initially setting a lower than market price to gain entry into the market. Think back to when the Japanese initially introduced cars into the U.S. market. They were cheaper cars, but with equal or better equality. Now Toyota is poised to become the number one selling car manufacturer in the U.S.
3. Price skimming: Low quality and high price.
With this strategy a company will set a relatively high price initially and then reduce the price over time. Over time, they are able to get consumers at every price point. The perfect example of this is the Apple iPhone, it was originally $499 when it was introduced. Apple is now introducing the second version on July 11th at a price of $199.
4. Premium pricing: High quality and high price.
Every luxury brand follows this pricing strategy, which is keeping the price of a product or service high, so that buyers will favorably perceive it as superior or exclusive. Think of Coach or Bentley or even the Ritz Carlton.
How to use the matrix:
Step One: Determine where you are on the grid. You might have products or services that fall in one or more categories.
Step Two: Determine which quadrants your competitors fall into
Step Three: Determine holes in the market. Do you and your competitors fall under the premium and penetration quadrant? Then, there might be opportunities in the economy and skimming quadrants. What products or services could you introduce to take advantage of these "holes" in the marketplace.
Step Four: Determine if you can have products or services that would fall into every quadrant. For example, Toyota has a Toyota Corolla (Economy), a Prius (Skimming), and Lexus (Premium). H
ow do you know if a change in pricing strategy will be successful? Well you don't know what is going to be successful. The best thing is to do your research upfront before investing too much in a new pricing strategy or product or service. The three biggest questions are:
1. Is there a market for it?
2. How can I reach that market?
3. Do you have the talent and resources in order to reach that market?
So give some thought to your pricing strategy. What is the cost of increased market share, more customers, higher revenue, and increased profits - priceless.
Aisha Jones-Scheffel is "The Doctor CFO." Get her FREE SPECIAL REPORT, "7 Never Before Told Ways to Make Your Practice Stop Bleeding Money (That Has Nothing to do with Insurance or Billing)" and her FREE money management how-to tips at http://www.DoctorCFO.com.
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