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How the Right Product Positioning and Pricing Can Increase Your Sales

As a small business owner, it is very important for you to position and price your products in such a way that you achieve maximum sales and profit margins.

However, there are some factors that need to be considered so that product positioning and pricing can bring about an increase in your sales.

Researching Your Market

You should conduct research in your market and find out what prices have been set by your competitors for similar products. Find out the warranty and after-sales service features offered by your competitors as well.

Next, find out what superior and inferior products cost, as compared to your products. You can now determine the strength and weakness of your product’s prices, as compared to the other products on the marketing; and can find an empty slot that you can position your product in.

This method will reduce competition, since your product will be in a position where superior quality products are priced higher and inferior quality products are priced lower.

Select Your Product Position Either by Basic or Premium Pricing

Depending on the product, you can either just add your profit to the product cost and sell it off; if the product is rare, is an artifact or is technically complex, you can add a premium to your profit margin.

This will put that product in the premium segment due to the halo effect’. For example, a Mercedes and a Suzuki Hatchback will both take you from point A to B; but in the case of Mercedes, the word ‘luxury’ adds a premium to that product - and it is therefore positioned at a different level.

You will need to add a little ‘more’ to your product if you want to position it at a higher level.

4 Tips to Closing a Sale Successfully

Depending on the type of business that you do, it is very important to hone in on the correct selling strategy to ensure that you close almost all of your deals, rather than missing out on some or most of them.

Here are some methods to assist you in closing sales successfully.

Don’t Rush the Deal

You should lead the prospective client slowly but steadily towards the closing. Don’t get too aggressive or rush through the process.

Take the required steps to ensure that the customer is comfortable when finally go for the close.

Timing Is Critical

Each and every deal is different. So it is very important to observe the prospective client to ascertain the position of the deal.

Once you are sure that the customer is comfortable and ready to close, then get that pen out and get the job done.

Different Routes for Different Folks

You might have to take different routes to sell the same product to different customers.

Depending on the person you’re dealing with, create a need, pamper the prospective client’s ego or explain how their life will become easier after buying your products or services.

Observe your prospective client before deciding on which sales pitch will work best on them and go for it.

Build Trust

You should not think of selling a product as a one-time affair, but rather as a lifelong commitment. Once your prospective clients put their trust in you, then closing future deals will become just a formality.

Use the above methods to ensure that you close each sale successfully. Your clients will walk away satisfied and hoping to do business again with you in the future.

Top Reasons Why Salespeople Fail

Many salespeople are ill-prepared when they step into the selling arena and try to convince people to buy their products.

Given below are some of the common reasons why salespeople fail and how you can help your salespeople succeed.

Not Enough Product Knowledge

Many salespeople do not take the time required to study the technical aspects of their products. They are more concerned about how many they sell.

As a result, they cannot answer the technical questions of their potential customers. Many times, this is a result of poor training by their superiors.

Over Or Under-Confidence

Both are bad for salespeople. A salesperson should have confidence - or should at least look confident when approaching a prospective customer.

They should not act arrogant and should use language that customers can understand. Being attentive and understanding the customer’s needs before taking action will help them in increasing their sales numbers.

No Follow Up

Many times, a salesperson might be quite aggressive while trying to get an order; but once the sale is closed, they then neglect to follow up on the order and ensure that the product reaches the customer on time.

They should be aware of any problems, and should communicate with customers if there is a delay in shipping or any other problem.

Not Interested

Many salespeople try very hard to get into sales but once they do, they forget all about sales and seem to be distracted with other matters. This results in customers being frustrated by the salesperson’s lack of interest in selling or solving their problems.

Sales is an interesting, challenging and rewarding activity in any business - but salespeople should realize that effort is needed to be successful and stay ahead in the game.

How to Make Cold Calling Pay Off

Most salespeople hate cold calling. The results are usually quite dismal, compared to the time and effort made to convert telephone calls into firm inquiries and sales.

Here are some tips that will help you to increase your chances of success in the cold world of cold calling.

Have Your Punch Line Ready

Do not keep your punch line reserved for last, since you might not get that chance. Have your punch line ready to make an explosive start and to keep your listener interested in your call.

Even if the prospective customer doesn’t entertain you, chances are that he or she will remember the punch line in the future.

Research Your Target Market

If you have a list of numbers and addresses in hand, then first eliminate prospects who might not buy from you if they are geographically or financially out of your sales area.

If possible, get data from 2 sources and compare them that way, you’ll have a viable list of prospects.

Set a Fixed Time

Do not call prospects early in the morning or late in the evenings, when people are most likely to be having dinner, sorting out the previous days’ matters or planning for the next day.

Use the early or late afternoon period, when prospects may be slightly more relaxed. Once you set up a routine, then it will become much easier to make that call.

Use Tact and Be Alert

When cold calling, try to understand what the person on the other end of the line is feeling and act accordingly. If the answer is a firm no, then move on. Don’t argue or try to force the other person to listen to your point of view.

Use tact to negotiate around objections without being aggressive or downright annoying. Above all, if you sense that your prospect is getting angry, simply leave your company name and number and call it a day.

Cold calling might seem a waste of time and energy - but if you do your research and your sales pitch is interesting, chances are you will be successful.

How to Earn More Profits Through Niche Marketing

When you have been in your business for some time, you might realize that there are certain services or products that customers are willing to pay much more for.

You can enter into a niche market and increase your profit margins while selling limited items. Here are some tips to help you prosper in a niche market.

Identify your Clients and the Products They Need

The first thing to do is to correctly identify products that are not readily available and that your customers and prospects are willing to pay more for.

Hone Your Knowledge

This is a very important aspect when you are planning to enter a niche market, since your product and procurement knowledge should be honed to perfection if you want to stay a step ahead of your competition.

The rarer the products, the more profit can be earned from them.

Get Your Travel Bag Ready

To procure certain items, you might also have to travel halfway around the world. Some products, especially rare artifacts, might not be available in areas that are accessible locally.

As a niche marketer, you would not want to sell products that are easily available locally or that abound in Internet sites such as eBay.

Consider Industrial Products

Operating in a niche market does not only imply selling rare consumer items. The products you offer could also be complex industrial products coupled with extensive services, which very few businesses can provide to customers.

If you want to stand out from the crowd and earn more profits, then entering a niche market is a sure way of achieving small business success.

How a Marketing Consultant Can Help Your Small Business

When you are running your company, you could become so busy looking after the different aspects of your business that you might not realize its true needs, especially implementing a sound marketing strategy.

Here are some ways in which a marketing consultant can help lead your small business to financial success.

Giving Concrete Shape to Your Ideas and Business Plans

A marketing consultant can translate your ideas and transform your business plans by showing you concrete paths that can be followed to attain success.

They will tell you the defects in your plan (if any) and show you how to avoid the pitfalls. They will also set a realistic time frame in which you can attain your business goals.

Selecting Your Business Priorities

Your marketing consultant will guide you on the aspects of the business that you need to place the most priority on, so that you can maximize your sales, profits and cash flow.

That way, once your business is stable and flourishing, you can attend to the lower priority aspects of your business.

Extracting the Maximum Out Of Your Marketing Budget

Depending on how your sales and your profit margins stack up against your expenses, your marketing consultant can guide you on developing a budget that can be set to successfully market your products. They can also guide you on which type of media will be more suitable for your business, be it newspapers or TV or the Internet.

An experienced marketing consultant can also save you a lot of money, which otherwise would have been spent in finding the right method of advertising for your products and services.

A good marketing consultant can look at your business from a professional angle and then give you a definite route to follow to attain ultimate small business success.

How to Make the Most of Your Press Release

Getting your company’s name mentioned in any press release will give your small business a lot of publicity. It also gives it authenticity and respectability.

Below are some steps that can help your business get more out of each and every press release.

Use Your Contacts

If you have a friend that works for a magazine or newspaper, then use that resource. Find out if they are genuinely interested in your company’s details or any breakthroughs that you might have achieved.

This arrangement could work both ways, as you would get your press release printed, and the magazine or newspaper would get an exclusive story in return.

Hire A PR Agency

You could also hire a PR [Public Relations] agency. They could use their contacts and arrange interviews, or even get press releases from you and forward them to newspapers or magazines and get them printed.

However, hiring a PR Agency is an expensive proposition, so make sure that you expect to get much more in the way of profits and publicity than what you would be spending.

DIY

Alternatively, you could get the names of prominent magazines and newspapers in your field from a media guide or the Internet. You can then follow up by calling the person who is handling the press release department and inquire about the status of your release.

This method is more difficult and time consuming; but if you don't have any other choice, then it's the only way to go.

Try the above methods to ensure that your press release does the job it was meant to do in the first place.

Using Gift Certificates to Promote Your Business

If you are in the retail business, then issuing gift certificates is an excellent way of increasing your business - and ensuring that your customers remain loyal to you.

Below are some of the ways that you can use gift certificates to give your bottom line a boost.

Issue Gift Certificates to Existing Clients Bringing In New Clients

You can have a program where you reward existing clients who introduce their friends and relatives to your products and services.

That way, your existing clients will have an incentive to bring in new clients - and you will benefit by roping in new customers without much effort.

Use Festive Occasions

Issue gift vouchers that can be presented by your clients to their loved ones and which can be used to buy products during festive seasons.

Customers always appreciate getting something for free, especially during festive seasons such as Christmas and New Year's. Normally, people end up buying much more than just the value of the gift certificate, resulting in additional business for you.

Issue Gift Certificates to Your High Value Clients

You can issue gift certificates to clients who make high-value purchases. Instead of simply giving them discounts, this is an even better method that you can use to ensure that they keep buying from you. It will also make them feel that you appreciate their business.

Distributing gift certificates is an excellent way of rewarding loyal customers and generating new business. Try giving out gift certificates to your valued customers. You will be pleasantly surprised by the results.

What Does A Good Brand Strategy Involve?

A good brand strategy doesn't just involve designing logos and punch lines. It involves studying the psychology and the requirements and expectations of your intended market before you can put your plan into action.

Here are some methods to ensure that your brand strategy is right on target.

Do a Proper Survey

Don't let your employees devise your brand strategy by simply sitting in the office and surfing the Internet.

Talk to actual people connected to your products and find out the perception of your company and your products from them. Find out if any changes are needed to improve your products, services or the image of your company.

Check Out Your Competition

Look into the strategies used by your competitors and find out as what techniques you can adopt in your business.

You can also convert their products or service advantages into yours, if you have a superior product or a higher level of service.

Include Your Company History

Companies like Coke like to remind their customers that they trust any of their current or future products because of their long and illustrious company history.

You can include your company’s history and link it to your products in a way that any future launches will have the stamp of trust associated with that product right from the start.

Out Of Sight Is Truly Out Of Mind

Explore, innovate and implement your brand strategy - but ensure that you are always visible to your existing and potential customers. Use all possible forms of media to stay visible.

Current market conditions call for aggressive but tactful brand strategies to create interest and desire for your products in your potential customers. Use the above methods for a successful brand strategy.

How to Find Fast-Selling Items for Your Online Business

Once you start your online business, then you will need to find fast selling items, so that you get maximum cash flow and don't end up with dead inventory in your hands.

Here are some ways that you can zero in on fast-moving items - and make money selling them online.

• Visit Seller Sites Like eBay: You can visit sites such as eBay and check out items that are searched for the most.

  You can do this by going to eBay Pulse, which will show you the 10 top searches for all the different categories on eBay. A higher-numbered search indicates a higher demand for that item.

• Find The Source For Those Items: Once you get a list of items in hot demand, then you need to find out the cheapest wholesalers or drop shippers for those items.

  Try to get a good deal by purchasing those items directly. Then, depending on your online experience, you can buy those items and sell them yourself. If you don't want to bother with shipping and fulfillment, you can just pass on your orders to a reputable drop shipper.

• Ask Your Drop Shipper or Wholesaler: If you have had a good experience with a certain drop shipper or wholesaler, then you can also ask for their guidance.

  If you do a lot of business with them, they will probably be happy to give you a list of their fastest-selling items. Use their experience to your advantage.

• Do Not Hold On To Dead Inventory: If you are not able to sell some of the items in your inventory, then mark down the prices of those items and sell them immediately - even if you have to make a loss.