-•- TheHomeBizDigest Newsletter - Issue 221 -•-
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Marketing Tip
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It seems that the holidays almost always bring a slump in sales of
non-holiday or gift type products, so don't let yourself get down. 
One of the easiest things to do over the holiday period is to just
call it a day and take some time off, but that isn't always a good
idea. Just because you won't be making your normal income over the
holidays you shouldn't just give up and close shop all together. If 
an existing client needs to get in touch with you, they will likely
expect you to be around and expect you to respond in your normal 
time frame. Keeping your existing clients is one of the absolute 
most important steps to succeeding in any business, so don't drop 
the ball. We all pretty much expect that businesses are not going
to be open for business on Thanksgiving day, Christmas Eve, and 
on New Year's eve, but if you're thinking of taking off any more 
time than that, you had better let your clients know. Setting up 
an autoresponse, or putting a message on your website that gives
you clients information on when you'll be back in town is always 
a good idea. I know I've been talking about existing clients for
the most part, but don't forget about your new clients either. You 
are still going to have to make a good impression, even if they are
ordering for the first time on Christmas day. An although this new 
client ordered on Christmas day, you don't get a second chance to 
make that all important first impression. All new clients are hoping 
to find a great deal, a great product and of course, great service.
If you're around during the holidays, and take the time to respond
to your new clients, that will be remembered. These new clients are
probably expecting you to take your time getting back to them, so 
shock them with your service during the holidays. 

 
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Featured Guest Article
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MARKETING SMARTER TO EARN MORE
By Charlie Cook

An accountant once told me that he never met anyone who
didn't want to make 30% more money. Whether you want
a better lifestyle or to take more vacations, buy a fancy 
car, spend more time with your family, send your children 
to college or to give it all away, you could always use 
more money.

If you sell services, your primary limitations on earnings 
are your costs and the number of hours in a week. Most
independent professionals are already working well over 
40 hours a week and can't work longer hours to increase
earnings. Your goal should be to find ways to work less 
and increase your earnings. How can you market smarter 
and make more money?

DON'T DISCOUNT YOUR SERVICES
Have you ever heard of a lawyer or carpenter offering a 
20% discount on their hourly or daily rate? Every time you 
offer a discount or reduce your regular rates, you are 
sending a message to prospects that your services really 
aren't worth what you're asking.

Once your clients know that your prices are discounted or
negotiable, you will always be fighting a battle to be the 
paid full price for your work. Never offer discounts; your 
clients will assume that they are expected to pay the asking 
price for your services.

OVERCOME OBJECTIONS TO PRICE
Prospects invariably want to know your pricing before they
understand the benefits your products and services provide.
Quoting prices is meaningless until prospects can put the 
cost into the context of the results they can expect.

When prospects show concern about your pricing, it's a good
sign. It indicates their interest in buying your services 
and a need to understand the value you provide. You could 
list all the benefits of your services but if you really 
want to make the sale, it's far more effective to let 
prospects sell themselves.

A client's perception of value isn't based on how much they
pay, but on whether their expectations will be met and the
benefit they will receive. Don't get stuck on the dollars 
you charge per hour. Instead help prospects define the 
dollar benefit of your services.

When prospects query you on price, respond by asking
questions to help them identify for themselves the
problem they want solved, the cost of the problem,
the solution they need, and how you can help them.
Prospects buy when they think their expectations will
be met. Let them define their expectations and they'll
be far more likely to sell themselves when you finally
explain your pricing at the end of the conversation.

POSITION YOURSELF AS AN EXPERT
Differentiate yourself from your competition by using your
articles to regularly provide insight and ideas to your
prospects and clients so they come to view you as an
expert in your field. Use expert positioning and consider
raising your prices.

When Arnold Schwarzenegger first arrived in the U.S. he
had trouble getting work as a stonemason with his funny
accent, despite charging less than his competitors. A friend
suggested he set his prices above the competition and bill
himself and his partner as exclusive European masons. His
business took off and look where he is now!

AVOID HOURLY FEES
Unless you sell hour-long massages, charging by the hour is
the best way to limit your earning potential. When you charge
by the hour you lose money if you work efficiently or if you
get a great idea right away. Prospects can always negotiate
with you on the number of hours they want, undermining
your ability to put in the time needed to meet their
expectations.

Prospects want results. Help them clarify the results they
want and then set a project fee for accomplishing those
results. Make sure your contract or letter of agreement 
allows you to adjust your price if the project changes 
mid-stream.

USE VALUE BASED PRICING
You can pay $30 or over $5,000 a night for a motel or hotel
room. Both provide a roof over your head, a bed and your
own bathroom, so why do some people pay over 150 times
more for one than the other?

People buy based on their perception of the value provided.
If they understand the value that your service or product
provides, they may be willing to pay much, much more than
you are currently charging. Look at the results you provide
for clients and reassess your pricing.

LEVERAGE YOUR TIME AND MONEY
Like most service professionals you have limited time and
money to spend on marketing. Much of your time is spent
delivering services. Is your marketing helping you earn 
more? Do prospects understand the unique value you provide? 
If not, take a look at the way you are positioning your firm  
and adjust it to clarify your value to clients.

Are you making what you could be? If you apply even one or 
two of the above strategies, you'll be making more money 
than you are now without working any harder. You'll probably 
still wish you had 30% more.

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Charlie Cook is President of In Mind Communications in Old 
Greenwich, CT and can be contacted via www.charliecook.net,  
or by calling 203-637-1118. To get the Free Marketing Guide 
and the 'More Business' newsletter, full of practical 
marketing tips go to www.charliecook.net

 

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Beware
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Don't forget to take time off of work during the holidays. It is
sometimes hard to know where to draw the line when you work from
home, but make a conscious effort to do so. I personally like to
work for 2-3 hours in the morning and then take the rest of the
day off to spend time with my family.

 
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