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LAST UPDATE: 1/14/2012
We hope you find this arcthve useful. A subscription to The Small Business Advisor Newsletter is free. Subscribe now - it's easy! The Small Business Advisor Newsletter for February, 2001 ++++++++++++++++++++++++ ++++++++++++++++++++++++ --------------- ++++++++++++++++++++++++ We frequently get asked about LLC’s as an alternative to partnerships or other forms of incorporation. Basically an LLC provides personal liability protection with profit and losses passed through to the owner. Here are some additional advantages and disadvantages. Remember to consult with an attorney before making any decisions! Advantages: Disadvantages ++++++++++++++++++++++++ Pricing means more than how much you charge. Smart customers look beyond pricing when considering a purchase. Price is important but so are delivery times, guarantees, customer support and quality to name a few. Small and home based businesses can - in many cases - do a better job than "big businesses" in some of these areas. You should evaluate your pricing based on this fact. You're small and don't have the inertia or paperwork logjams of a bigger business. You're quick on your feet and can change direction easily and quickly. You cannot determine prices based only on costs and desired profit margins. First step is to do a little research to get some "real world" pricing guidelines. You don't need a high priced marketing firm to help. Remember, you know your business better than any consultant. Here are some marketing research tips: * Contact your competitors. Call, like any customer, and ask for pricing information. Quick and easy. * Find out about competitor's costs. Use trade groups, suppliers' sales reps, former employees. * Trade associations are a great source of pricing data. Use the library and the Internet to find these appropriate trade associations. * Use the Internet for research! This can be your most valuable research tool. Visit competitor’s websites; trade associations; newsgroups. Search the Internet using any of the major search engines. * Review catalogs that carry your product(s). With this information and your own costs you can determine where you set your own pricing and still be competitive. Price carefully. You might not be able to compete on price only but remember your advantages as a small business and emphasize your "quick service" or "outstanding customer service." You may be able to price higher and still win customers within your market niche. Be careful about lowering prices just to meet or beat the competition. There are, however, some good reasons to lower prices: * A strategy to increase
market share. Sometimes you have to increase prices in order to cover, for example, increased cost of materials, labor, etc. When an increase is necessary ease the pain for your customers by considering the following: * Notify your existing customers of the increase and, if possible, give them an opportunity to purchase at the existing prices. * Try and advertise the increase along with "new and improved" products or services. * Give the customer something in return for the increased costs. For example, free shipping with orders above a certain value. * If possible, delay the increase for existing customers. The biggest mistake small businesses make concerning pricing is not reassessing pricing on a regular basis. The marketplace is constantly changing making it mandatory you keep a close watch on your pricing. Raise or lower prices as necessary keeping the above suggestions in mind. ++++++++++++++++++++++++ Your website is a marketing tool and as such needs to be effective in terms of ensuring the visitor is comfortable with what they see. Color is a big part of this. Remember that colors evoke emotion and associations. Here are a few things to remember when choosing colors. Red. Danger, stop,
error, increased awareness, negative, loss, viewers pulse increases! ++++++++++++++++++++++++ 1. Price point: Are
you expensive, moderately priced, or cheap? © 2000 Marilyn Ross. From Shameless Marketing for Brazen Hussies™: 307 Awesome Money-Making Strategies for Savvy Entrepreneurs. Details and ordering at http://www.BrazenHussiesNetwork.com Return to top of page - Back to Home Page - Back to Archive Index |