Question:
*Is your pricing right on the money to make you money?**
Answer:
At The Alpha Group we make certain that you focus on and refine your pricing strategy in order to gain your ideal customers at the optimal prices.
So, how does this happen?
-
Easy, its a six step-process using the power of the peer-to-peer advisory board.
Firstly the peer-to-peer advisory board help you identify what is your strategic problem.
Successful companies implement price strategies that focus on building your businesses to serve your most profitable customers. Many even fire customers who are unprofitable. However other companies use poor pricing strategies and cannot identify your most profitable customers. These companies often drive away their best customers and then wonder why your profits are not growing.
The following is a list of 10 of the most common mistakes companies make when pricing products and services, are you:
1 Basing your prices on your costs
2 Basing your prices on your marketplace
3 Attempting to get the same profit from different products/services
4 Failing to segment your customers
5 Holding your prices at the same level for too long
6 Giving Incentives to your salespeople on units sold
7 Not investing sufficient resources into managing pricing
8 Failing to establish internal procedures to optimise prices
9 Spending too much time serving your least profitable customers
10 Relying on your salespeople for customer data
This list is not exhaustive however, and there may be other areas where your pricing strategy could be optimised.
Summary
The optimisation of your pricing strategy is as important as the management of your costs.
-
Secondly the peer-to-peer advisory board help you decide your pricing strategy.
Identify where you are in the 4 quality/price quadrants:
1 Medium Price High Quality
2 High Price High Quality
3 Medium Price Medium Quality
4 High Price Medium Quality
A. Your current pricing strategy for your product/service.
What is your goal for your pricing strategy? (e.g. to achieve greater penetration of your market):
•
B. Your improved pricing strategy, if different.
What is your new goal for your revised pricing strategy?
•
What are your strategic conclusions on the above?
•
-
Thirdly the peer-to-peer advisory board help you determine your price/sales sensitivity.
The objective is for you to gain ideal customers at optimal prices. You’ve decided your pricing strategy. With your prospect, you have determined their priority problem and key need. You have then aligned your important solution to your need and you have calculated with you the likely benefits and return on your investment (ROI) of your solution. So now is the time for you to state the price of your solution which achieves your prospect’s ROI yet which gives you long term profitable business with your prospect (an ideal customer).
Having worked hard with your prospect to identify a high ROI (a high value solution), even in these challenging economic conditions, NOW is NOT the time to start discounting. Why? Because even if you get the contract, the discount you offer harms the opportunity of a profitable sale for you. if you have demonstrated an important, urgent and HIGH VALUE SOLUTION, put up your prices by 5%. In the example below, at 25% gross margin, sales would need to fall more than 15% before a 5% price increase would have a negative effect on your % margin.
A suggestion for you. With your Team, review Box A below, then in Box B calculate your price increase/potential sales decrease at your target desired gross margin.
Some markets are very price sensitive, and others are not. How elastic is your price realistically.
Fourthly the peer-to-peer advisory board help you decide your next actions.
Lastly the peer-to-peer advisory board help you take massive action.
The profound impact on you and your company of achieving your optimal selling prices is that within 12 months enjoy profitable sales from the right customers for your business leading to substantially increased value.
If you would like to find out more about how The Alpha Group members achieve optimal selling prices then please get in touch and I will be happy to send you further information about visiting a suitable group, online, face-to-face or blended with a mixture of real world and virtual board meetings.
About your Successful Advisory Board
Achieve a lower break-even point
Achieve additional, profitable revenue streams
Achieve your optimal selling prices
Acquire and integrate other companies for growth
Application to become a Member
Ask for Referrals to your Advisory Board
Attract members to your Successful Advisory Board
Automate your Successful Advisory Board
Be a more successful Business Leader
Build a balanced, effective team
Build a successful online business
Build an engaged and empowered team
Build your powerful belief about your company goals
Build your Successful Advisory Board
Build your successful online meeting
Capture the value in your existing connections
Clone your successful Alpha Group
Create and protect your intellectual property
Create successful strategic alliances
Create your compelling company purpose and guiding principles
Decide your best option for growth
Decide your bold, motivating company goals
Decide your special niche for growth
Define your compelling business proposition
Develop a strong business model for growth
Develop strategic and inspiring leadership
Develop your successful new products & services
Establish your Successful Advisory Board
Establishing Subject Matter Experts
Feedback from today's advisory board
Filter in your high-probability customers
Forecast your likely market value in 3 years
Future proof your business with an effective risk management plan
Get your products and services into a big growing market
Grow your business nationally and internationally
Help an advisory board member with their issue
How To Grow your business and double its value in 2 years
How to Run a Successful Online Meeting
How to Use the Alpha Group Online System
Increase your customers for life
Involve your people in your purpose, goals and plans
Keep your growth on track through effective indicators
Learnings from today's Advisory Board
Leverage your existing connections
Manage relationships with your customers
My Commitment to my Advisory Board
My key issue arising from today’s alpha meeting
Organise your company for growth
Plan how to increase your operating profit
Plan how to increase your profitable sales
Plan your desired market value
Post-Meeting Checklist for Regional Directors
Pre-Meeting Checklist for Regional Directors
Prepare an issue for my advisory board
Prepare your business for a high value sale
Preparing an issue for my advisory board meeting
Proposals from your Advisory Board
Questions from your Advisory Board
Raise the right finance for your company growth
Recruit the right people for your team
Register for an Alpha Group Online Meeting
Remove your strategic barriers for growth
Reports from previous advisory board meetings
Sell your business effectively
Sign the Non-disclosure Agreement
Significantly increase your brand value
Start your successful Alpha Group
Streamline your business processes
Successfully implement your key projects
Successfully implement your quarterly priorities
Successfully Partner with The Alpha Group
Successfully present your powerful growth plan
The Alpha Group in your Community
The Alpha Group Terms and Conditions
The Power of Subject Matter Experts
The summaries of the 50 fastgrowth workbooks for business leaders to achieve FastGrowth™
Thousand Day Business Support Cycle
Track members for your successful Alpha Group Launch
Transform your brand, content and online presence
Value, Include and Personalise to create a VIP Visitor Experience
Welcome to The Alpha Group Online System
Your Peer-to-peer Advisory Board
Your Question and Proposals Pinup Board