When you quote a potential customer for your product or service, either verbally or in writing, you’ll lose some business on price. You may not always know whether price was the issue. But suppose you could find that out, what proportion do you WANT to lose? Your first thought is probably “Zero of course!” but […]
Three pricing charts for you to use
You might want to print these off – or bookmark this page for future reference. And make sure your sales people see this first chart before they give a discount!! for example, if you are making 5% profit and you give a price discount of 3%, you’ve got to sell an extra 130% to make […]
Business Processes
Everything affects everything else, so what should you change, and where do you start? This next diagram shows you how things should be, could be: and the four blue boxes on the left are the ways in: Each of these blue boxes is a whole other story – HOW MUCH should you put […]
Why half of your customers should not be able to afford you!
I read somewhere that you should be losing half of your business on price, in other words you should set your price so that half of your potential customers won’t pay it. Can this really be true? Well, I just made this spreadsheet simulation and sure enough, the rule is correct! if you […]