I’m a Newtown Square, PA tax accountant who deals with many different kinds of businesses and organizations (both locally here in Newtown Square, PA, but also nationally). What I have for you today might properly be most appropriate for those who run an actual business, rather than a non-profit.
It’s a distinction worth making.
The reason I say it (and this may be somewhat controversial), but one of the main motivating reasons to be in whatever business you’re in should be profit. Yes, this can ruffles some feathers (amazingly so), but hear my thinking on this:
If profit is not on your mind … you don’t belong in business — you belong in a non-profit org. Yet as someone who deals with Newtown Square, PA small business owners on a regular basis (both as clients of Stephen J. Venuti, CPA, MST, LLC, and as friends), I find all sorts of people in all types of businesses who are not profit-motivated.
Business decisions made with something other than profit as a significant consideration are almost certain to be bad decisions.
Now, look — I’m being a bit strong here, because I want to make a point. Even if you run a non-profit, or have what you believe to be a “different” business, I believe there’s a lesson here for you.
There are so many ancillary (and wonderful) reasons to be in business. And I love the romance of the mom ‘n’ pop or the startup who creates a magical environment for their staff and customers.
But unless blood (revenue) is flowing through the veins of it, the organization will shrivel and die.
So today might be some strong medicine, but I do hope you take it seriously.
Newtown Square, PA Small Businesses: Charge What You Know You’re Worth
“Sooner or later, those who win are those who think they can.” -Paul Tournier
I find that most Newtown Square, PA area business people under-price their products and services. And it’s my experience that price either isn’t or doesn’t have to be a very important factor in a consumer’s decision or the success of a business.
We should all seek to be positioned at the high-end of a price scale and have our competitors focused on selling from the perspective of being “cheaper” instead of being better.
I know of a chiropractor that is surrounded in his area by other doctors who charge $35.00 to $55.00 less per typical treatment. Yet his practice is bigger and more successful than three of his close competitors added together.
In my experience that’s not an exception — that’s a rule of business. Almost every time I’m asked by a client of Team Venuti or friend to look at a business with an eye to help, one of the very first things I encourage is to raise prices or fees. Sometimes the adjustment is pretty dramatic.
Price is the laziest and riskiest advantage to market with. Buying business with lower prices is relatively easy … but keeping business obtained purely because of price becomes much more difficult. So, one way that you can immediately increase profits is by increasing your prices.
You might say, “Okay, Stephen, just how do I go about doing that?”
Well, the first (and easiest) answer is to simply do it. If you have a good relationship with your customers or clients, I guarantee you’ll be happily surprised by what happens. It won’t be the disaster you feared it would be.
Another smart strategy is to re-package what you currently provide, into “bundles” or packages, and watch your average transaction value soar.
Lastly, much of this comes down to how you position your Newtown Square, PA business. Are you drawing “price shoppers” with your marketing? Or, do you emphasize relationship and value — which are *not* tied to price? When you put structures into place that ensure a strong, personal connection to you or your staff, you will find that your customer list can weather an increase.
So, try it out — and let me know what you think. You (and your books) might be pleasantly surprised.
I’m grateful for our chance to serve you and your business — and we are dedicated to its success, in every measure.
Feel very free forward this article to a Newtown Square, PA business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Newtown Square, PA families and business owners. And we always make room for referrals from trusted sources like you.
Warmly,
Stephen Venuti
610-353-0686
Stephen J. Venuti, CPA, MST, LLC
