Pricing Strategies – Volume Discount

Once you know the minimum price you can accept to meet or exceed your breakeven, you are ready to price your products or services to achieve strategic business objectives. Pricing your product or service properly is one of the most overlooked marketing strategies you can employ to achieve the business results you desire. Over the next three [...]

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How Disruptive Technology Can Affect Your Business

New disruptive inventions don’t only affect manufacturers like our button manufacturer in yesterday's post. Sometimes technology affects service businesses as well. Let's consider the safety razor and the impact it had on the barber industry. While Jean-Jacques Perret invented the safety razor in France during the latter part of the 18th century, the invention reached its tipping point over a [...]

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Is Your Business On A Path To Extinction?

Several years ago I attended a presentation by Daniel Burris, the author of the book “Techno Trends.” The opening line of a presentation that still resonates in my head to this day is “The future is already invented”. After a long pause to allow the line to sink in, Mr. Burris began talking about technology life cycles. It takes years [...]

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You Are Not a Small Business In the Eyes of the Government

The news is filled with quotes from government officials extolling the critical role Small Business plays in our economy. However, your definition of a small business is most likely not the same definition as the government's. The image most government officials have when they speak of Small Business is of a successful business that has been around for ten or more [...]

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Seven Common Business Formation Errors

Many new business owners make several mistakes during and after the registration process that can come back and bite them later.One common formation error is that the registering agent fails to include an entity identifier in the name, such as LLC or Inc. Once registered, many LLCs fail to produce an operating agreement. Many S-corps fail to adopt bylaws, appoint a board [...]

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Harness the Power of Expectations and Price

A business associate of mine once used to charge $5,000 per day for his consulting services. I asked him once how he came to that rate and he said he heard someone was charging $4,000 per day and he wanted to be sure he was the most expensive option available. At the time he billed out about two hundred days per [...]

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Harness Our Need to Compare and Decoy Prices

As a rule, faced with two similar options and one dissimilar option, behavioral economics says that most people will discard the dissimilar option and choose between the similar options based on our hardwired need to compare two like things. Furthermore, behavioral economics shows us that by contemplating a number, which in fact can be quite arbitrary, we [...]

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Harness the Power of Free

Remember when Blu-ray and HD DVD were competing head to head and it became clear that Blu-ray was going to emerge as the standard? Savvy retailers, knowing that buyers respond in irrational ways to the word “Free”, began to offer HD DVD players that sold in the neighborhood of $400 a piece with “Five Free DVDs with the purchase of [...]

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