Stephen Venuti Discusses The Wrong Way To Start or Turn Around a Business

I have too many friends who start a business, or seek to turn around a flailing one, and use this principle as a guiding light.

May it ever be stricken from your consciousness.

But before I remind you of what I KNOW you surely know … here are a few other things you surely know, but also perhaps need a reminder for … (like a good blog post, this is your friendly reminder):

1) Monday, September 15th is the estimated tax payment deadline for the third quarter.Our existing clients were given coupons to make it easy (albeit never fun), so let us know if you need any quick input there…

2) Corporate extensions are also due that Monday. This really only applies to you if we handle your S- or C-corp returns (which, of course, we do for a number of our business clients in the Newtown Square, PA area). We’re on top of this on your behalf, if that’s you.

And now, for my primary friendly reminder of the week …

Stephen Venuti Discusses The Wrong Way To Start or Turn Around a Business
“There is no victory at bargain basement prices.” – Dwight Eisenhower

I discuss this all the time with my business owner clients — how to price their services. You see, often, we might hear consumers say, “Well, I would buy it if it were in my price range.” And, that idea tempts many business owners to lower their prices–just to sell more products.

However, as you already know, price reductions sometimes create more problems than they solve.

For example, price reductions…

* Decrease net profits
* Lead to the purchase of lower-quality products
* Increase customer demands to drop the price even lower!
* Require even more sales to make up the difference in revenue
* Need a larger quantity of products

And, in the end, as Stephen Jantsch (author of Duct Tape Marketing) says, “There will always be someone willing to go out of business faster than you.”

Remember this: price is not a benefit. The close of a sale is not determined on the cost of your product. If you truly “sell” your customers and prospects, they will purchase your products/services no matter what price you determine.

That’s the plain truth–and you’ve probably seen it in your own purchase patterns.

If a customer or prospect doesn’t buy–and they claim the cost had something to do with it–you can guess they probably wouldn’t have purchased anyway.

As a small business owner, and marketer, your job is to sell your products and services. But the actual art of selling has nothing to do with the price of the product.

By the time your contacts find out about the price, they should be determined to purchase no matter what the cost.

So, find “real” benefits (value) to sell to your customers and prospects. Help them to see how great their life is with your product, and you’ve got a customer. Point out their current pain, and your contact will do anything to get rid of it.

Set your prices and hold fast. If you’ve marketed correctly, you will still have customers anxious to do business with you.

Price gouging is a horrible thing — but, really, that’s a bogeyman that lives more in our heads than in real life.

Charge your worth. You deserve it.

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, at Stephen J. Venuti, CPA, MST, LLC we specialize in tax preparation and planning for Newtown Square, PAfamilies and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Stephen Venuti

Stephen J. Venuti, CPA, MST, LLC

Stephen Venuti Discusses The Wrong Way To Start or Turn Around a Business