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Use Business Orienteering™ to Grow Your Business

May 4, 2012 By Leave a Comment

Orienteering is a sport of navigation using a map and compass. It started in Sweden and is now used by Boy Scout troops, social studies and math teachers worldwide. It’s often called the “thinking sport” because it involves map reading and decision-making in addition to a great workout. The goal is to get to all the places indicated on the map faster than others who are competing.

How does orienteering apply to growing a business?  Business Orienteering™ reminds owners that it’s all about the journey and getting to success faster, and safer. It’s a good way to think about the importance of vision, planning, and decision-making. Growing a business is a workout but it can be and should be fun not just hard work.

In the sport, an orienteering map is a kind of topographic map. It shows the shape of the land and many other relevant features hills, valleys, rivers and streams to cross, trails, fences, fields, thick brush, and so on. It’s given to the contestants.

But, business owners can’t use someone else’s map. We have to start by making our own map and finding our own way. Our map will be unique to us and illustrate our passions and our perspective.

A business “topographic” orienteering map shows each owner their own strengths, weaknesses, opportunities, and threats  as well as their company’s. They will have to deal with or exploit to reach the end of their journey. It shows the long term vision of the company and it should show the best way to get there. It should include their personal development, family issues, and how they will give back to the community along the way.

When this journey is done, the owner’s reward is a return on all their investment of time, money, and energy. It is also a feeling of satisfaction and control — of building a successful business their way. Along the way, it has given the owner freedom and independence to do other things that were important personally.

Business Orienteering™ is a great “sport” for owners. I hope you will want to play. It will help you achieve your journey faster, safer, and with more fun.

Here’s to your success!

Filed Under: Business Ideas, Business Management, Planning & Vision Tagged With: , , , ,

How Can Business Pride Pay Off?

March 23, 2012 By Leave a Comment

Teach a young man to fish to empower him. Photo from:.flickr.com/photos/linsight/

In April, I will receive the 2012 Career Achievement award from my undergraduate college, Mary Baldwin College, in Staunton, Virginia. One of the questions they asked me was what was I proudest of in my career.

It’s a great question and complex for me to answer. The short answer is the business I built with my husband. This year our business and our marriage celebrate 30 years. That’s a big payoff.

But I (or you) can have all kinds of pride that payoff. In my case, I am also proud of:

  • My Staff
  • My Colleagues
  • My Customers

I am especially proud of how all these groups have helped us survive downturns, take advantage of opportunities, learn, and grow. They have also come together to help us to be proud of the vision and philosophy we adopted. We have seen them take pride in their accomplishments, too.  Definitely, a win-win for all.

Pride may go before a fall, but it can also be good. It can help a business owner focus on what really matters. My husband and business partner, Daniel Diener, and I may see the Business Success Center as providing sales, marketing, and financial strategy to growing and under-achieving businesses but we also take pride in educating owners so that they can achieve success during and after working with us.

We take pride in having education as a big part of our business philosophy. To us, the Chinese proverb is exactly right: “Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.”

That pride shows itself each year in our outreach to our colleagues to participate in educational programs. In our early days in business, it was our Entrepreneurs’ Day. Then it was to ask them to assist with the “Street MBA” and “City Management Academy” that we developed and taught for Austin Community College continuing education. We then brought it in house to the Business Success Center as our “Owners MBA” program but kept them a part of it. Over the years, we have seen the pride of almost a thousand people who learned how to get their business or department on course and over a hundred who are proud of their contribution to this discovery process.

Then there was RISE Week, a full week of free business education provided in locations around Austin. We started doing sessions for RISE by ourselves. Because we were proud of the goal of the event and our colleagues, we asked a few to join us and share their expertise to business owners and wannabe owners. We provided the venue. We all provided our knowledge for 90 minutes for free to anyone who showed up.

Now, four years later, we have 30 experts including Dan and me providing seminars on topics ranging from business ethics to marketing and sales to financial and legal issues. Next week, March 26-30, you’ll find us at our offices at the Chase Bank Building 7600 Burnet Road hosting 25 RISE sessions, 5 a day, from 8am to 4pm. It’s our BSC RISE Week contribution and we’re proud to do it. I hope you’ll join us. Here’s where to go for a list of our presentations and links to sign up, http://ownersview.com/rise-austin-2012/

I want to share my RISE pride with you.

  • I am so proud that Ed Lette, President and CEO of the Business Bank of Texas, will be one of our funding panelists.
  •  I appreciate the pride of Tony Quesada from Austin Business Journal, Kevin Benz from CultureMap Austin, and Michael Pearson of YNN and others who are taking their time to let businesses “Meet the Media”.
  • I recognize the pride of knowledge that our other presenters bring and the time they give up to do this.
  • I acknowledge the company pride of GoLocal that is donating a GoLocal card supporting local businesses as a door prize for each session.
  • I am so grateful and proud of the great help that I have gotten from Jaxzen Marketing to  help us get the word out and to educate our experts in how they can use social media to let their customers and prospects know about this event.
  • There’s my staff, especially Chris Pasch and Marsha Vanhorn. They take pride in helping make this a success for presenters and participants.

I couldn’t and wouldn’t have done this without all this help. It makes me proud to call all these people “friends” as well as colleagues.  I hope they feel this way, too.

If you don’t think pride leads to success, just look at the people who work for you. Pride can also help employees to see their jobs as more than a paycheck.

When studies are done about what motivates employees, no matter what the economy is doing, good wages are not the most important thing. They don’t even come in second.

What does top their list? Pride. Their pride is reflected in their top desires: promotion and growth, feeling in on things, and feeling valuable to the organization.

Now, I’m asking you. What makes you “Business Proud”? Say it out loud. Say it to your employees. Say it to your customers. Pride can be a very good thing to have and a big pay off. In hard times, it can be hard to keep your pride but it’s critical to getting through, getting on, and being successful.

Tell me, too.  I really want to know and share it. I wish I had an award to give each one of you.

 

 

Filed Under: Business Management, Leadership Tagged With: , , , , , , , , , , , , , , , , , ,

Overcoming 5 Challenges to Keeping Your Head in Tough Times

September 9, 2011 By Leave a Comment

What Goes Up Must Come Down

Sir Isaac Newton statue from Trinity Chapel. Photo by Harlequeen

Sir Isaac Newton proved it. David Clayton-Thomas wrote about it in the “Spinning Wheel” song. BS&T (Blood, Sweat & Tears) and Dame Shirley Bassey covered it in their albums.

Songwriter & singer Dame Shirley Bassey

How many ups and downs has your business experienced? Since we started our business, we have been through seven ups and downs – oil, banking, real estate, savings and loans, dot.com, Wall Street, and now real estate again. It has caused us to refine and redefine our business at least that many times.

If it’s a part life, it does not make sense just to try to survive this one because another wave is coming. If you own a business, the wave that could take you under could be something global like this “Great Recession” or something unique to you and your business. So be watchful; be prepared.

At the Business Success Center, we have identified five potential challenge areas that are always out there:

1. Economic

2. Environmental

3. Political

4. Social

5. Technological

What’s happening now? We are being hit by all of these all at once or so it seems.

What are people doing? Some are giving up and calling it quits. Some are digging in and just trying to survive  —  to just be able to “stay” in business. The successful ones are looking for ways to thrive.

What do you choose? Give up, give in, or stay in?

Keeping Your Head

Rudyard Kipling wrote his poem “If” in 1895 but it was not published until 1910. It’s a litany of actions to take to become a man (or woman). I think it’s also a useful guide on how to have a successful business no matter what is happening in the world outside or inside.

So how do you keep going when others are losing their way and people are blaming you?

It starts with confidence. This makes sense. After all, confidence in you (your product and service solutions, your staff, and how you do things) is the prime reason someone decides to buy something from you. No confidence, no sale — end of story.*

Step One: keep your head no matter what others are doing. Don’t just be confident you can survive, envision yourself as thriving. Pass on this confidence in your ability and skill to overcome any challenge that comes your way. Be confident in staff and customers, too. Confidence is contagious; spread it around.

Can you trust, wait, dream, think?

People buy from you because they trust you will provide them with the level of quality, service and selection they expect. Because you give them what they want not just what they need, they’re willing to pay your price and be glad it’s not more.

Owners who thrive in tough times are what authors Albert Bernstein and Sydney Rozen describe as “Believers” in one of my favorite books, Neanderthals at Work. It is an oldie but a goodie. (Buy it from your favorite local independent bookstore but they will have to order it.) This term does not have to do with a religious faith but in the thought that some people believe there is order, rules that matter and following those will make you successful and proud of it.

How do you demonstrate this?

You trust in yourself. You are willing to wait and see what happens. You think and plan ahead because the world turns and the best will rise again. You dream big and take actions that are counter intuitive to those who are quitters or just survivors.

What do you do, Little Red Hen? While Chicken Little** is saying the sky is falling, do you get out there and “Just Do It” ? Do you keep thinking how to work smarter not harder?

Here are some good “Thriver” choices. Dreaming, thinking and trusting are required.

1. You don’t cut prices or quality. You do contain your costs by setting up processes and systems that make you more effective and efficient. You may even raise your prices and get a better grade of customers.

2. You spend more on marketing. But you do it more efficiently. And, you do seek out alliances with other like-minded businesses and organizations.

3. You don’t cut back on staff. But you do get rid of the dead wood or at least rearrange that wood to light them up and get a roaring fire going instead of just fizzling out.

4. You become more selective in your customers. You go for the platinum and gold customers™ and dump the lead, concrete, and radio active waste customers™.

Risk Takers

“If you can make one heap of all your winnings
And risk it all on one turn of pitch-and-toss,
And lose, and start again at your beginnings
And never breath a word about your loss;”
(From “If” by Rudyard Kipling)

Banks, the government and non business owners think those of us who own small businesses are too volatile, too much of a risk taker. Just plain crazy.

I can tell you in working with owners of product and service businesses from accounting firms to zoos, we are the most risk adverse group on the planet. Any risk we are willing to take only happens after we have examined the other options and trust we can take an “informed leap of faith”.

If we guess wrong, then we usually start again. You can do that relatively easily in the US and even easier in Texas that is famous for being a “boom and bust state”.

In many parts of the world you “lose face” or even your life if you close your doors. By the way, even in tough times, most small business do not “fail” (close due to nonpayment of bills). They close the doors because the owners give up. They lose their dream, their trust and confidence in themselves, and their will to go on.

In the end, it’s your choice

As Kipling says,

“If you can meet with Triumph and Disaster
And treat those two impostors just the same;”

And

“Or watch the things you gave your life to, broken,
And stoop and build’em up with worn-out tools;”

And

“If you can force your heart and nerve and sinew
To serve your turn long after they are gone,
And so hold on when there is nothing in you
Except the Will which says to them: “Hold on!”

“Yours is the Earth and everything that’s in it,
And — which is more — you’ll be a Man, my son!”

You WILL always be a thriver, not just a survivor.

Author’s Notes:

*In experiments, researchers found they could influence the education outcome by telling the teacher ahead of time that a student was bad or good. Confidence does have consequences good and bad. We are talking here about honestly feeling positive about what you do for customers, your community, and others who count on you.

**If you are interested, the Chicken Licken or Chicken Little story comes from the Jataka Tales of Buddhist folklore not Aesop’s Fables and Little Red Hen is most likely a Russian folktale. I am confident that you will impress others with these bits of trivia and be well on your way to a more successful you.

Here’s to your long lasting success!

How do you thrive in tough times? Share your experiences. They could help the rest of us when we need a little inspiration.

Filed Under: Business Management, Business Process, Leadership, Planning & Vision, Pricing, Sales, Small Business/Entrepreneur History Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , ,

2 Ways Your Business May Be Guilty

July 29, 2011 By Leave a Comment

Franklin was right. Photo by Paul Hudson

In 1789, Benjamin Franklin said in a letter that there are only two things you can be certain of death and taxes.

He was certainly right about the taxes. Especially sales tax. We are hearing from clients and accountant colleagues about the increase in sales tax audits. These are turning out not to be friendly, let’s talk audits but somewhat nasty, prove you’re innocent audits where the assumption is that your business is not paying what it should.

The real issue is not whether you’re paying but whether you’re collecting, then paying. Since that’s what you are really doing. You’re the Sheriff of Nottingham and Prince John wants his due.

We are recommending to our clients that they actually pick up the phone and talk to someone at the Texas Comptroller’s Office. Their mission, should they accept it, is to validate what products and services they offer that are taxable. And, collect and pay the taxes of course.

This is not something you do once and forget. State legislatures in tough times move the goal posts to find “lost” revenue and a smart business owner is right there, ready to go. It’s very likely that what you thought was not taxable is now or at least part of it is. Their position, quoting the Texas Comptroller is “State Sales and Use Tax is imposed on all retail sales, leases and rentals of most goods, as well as taxable services”.

The second guilt for a business is payroll taxes. You are guilty of having employees and needing to pay taxes on them unless you can prove otherwise.

Even though people and bookkeeping software refer to “Contract Labor”, there’s no such thing. There are only employees and contractors.

As I heard every time attorney Tommy Simmons from Texas Workforce Commission spoke at my Street MBA and Owners MBA programs, no one can “sign away” their rights to be classified as an employee. So, don’t think you can ask someone to sign a paper that says they’re not an employee.

Everyone is an employee unless you can prove otherwise and that’s tough. There are 20+ ways to recognize you’ve got employees that are spelled out in a grey way by the IRS and Workforce. They look to see how many of those apply. If enough do, that person is an employee.  In general terms, the IRS says what matters is if the employer has the legal right to control the details of how the work/services are performed.

There is some information on employee vs contractor at the IRS site. We refer owners to Especially for Texas Employers that has a great section on the issue by Simmons who has been a business owner himself. Pay special attention to Appendix D & E which have a test that the IRS and Workforce apply.

So, be wary and prepared.

Have a happy Sales Tax Holiday, August 19-21 when you get a break as a consumer or business from state and local sales taxes on purchases of clothing, footwear, backpacks and school supplies priced at less than $100.

Filed Under: Business Management, Business Process, Financials, Government Legislation Tagged With: , , , , , , , , , , , , , , , ,

How Legacy Pricing™ Works

July 19, 2011 By Leave a Comment

Knowing where you're going is a great legacy. Image by TW Collins

There’s nothing wrong with Cost-plus or Value-based pricing when they are done right. Both are good strategies but incomplete in my opinion.

In the case of Cost-based pricing, basically you look at the costs and then add a percentage for profit on top of that number to arrive at a price.

In my experience, those who set the prices don’t know, forget, or leave out costs that they shouldn’t. Sometimes it is the cost of the salary of the principals or putting in enough for contingencies. Just as often they don’t include all the costs involved in being able to provide this product or service before and after getting customer #1. Then there are the true total costs to support and maintain this customer with this product or service.

Business owners who set or agree to the prices based on costs get overwhelmed and under-price. I have a client who is launching a new product and thought it had cost about $10,000. Once we did the numbers (we did not include lost opportunity costs but real numbers), it was closer to $55,000. It was not even launched yet.

I think Value-based pricing is a better strategy. It incorporates the costs and the value this product or service provides the customer. If all the true total costs are accounted for, then determining what the customer gets out of it, should be relatively simple. Market research, competitive analysis, and usability testing gives you a place to start.

It does depend on identifying the right value for the customer. What most people who use this technique to arrive at pricing don’t do  is spend enough time on identifying the best customer, the most loyal customer who brings the most value to the business.

However, a strategy that does more because it goes beyond both is a new concept, “Legacy Pricing”™.  It doesn’t just look at the past or the present, but really focuses on the future. The future of the company is its legacy and it’s too often forgotten or glossed over when it comes to pricing. Without a legacy, nothing goes beyond day-to-day and the value of the business is reduced even if it survives.

Legacy Pricing™ is a better choice for these times because it’s more complete. It includes cost and value. It includes profit and contingency. It deals with value identification, but it also takes pricing and relates it to a timeline in a meaningful way. The timeline for pricing should make sure the business shows it will maintain its value down the road for any subsequent transfer or expansion.

Using Legacy Pricing™ means using other best practices.

  1. Price for your legacy customer, using what I call a Platinum Profile™ .
    The latest research suggests that about 15% of your customers account for 55-70% of your total sales. Price to keep loyal customers not just any customer and not just to get people calling or coming in the door. My platinum profile™ system lets you really know who to focus on and who to eliminate. It includes demographics, psychographics, risk tolerance, decision-making style, purchase behavior, and the “game” they play. Price for them and you won’t leave money on the table and you won’t exceed their “pricing flinch point”™. (The point at which you can see a physical reaction to the price you name.)
  2. Price for positioning, now and in the future.
    Don’t forget where you’re going and who you want to go with you. One of the biggest dangers of discounts, coupons, etc. is that it ruins the positioning that you have established. No longer are your products and services the best, Why do customers feel like that? Because the best products provide the extra quality and value that takes time and effort. If there’s not enough time to provide this or enough quality staff, then your customers will see you as just “one of the group”. And, worse, not worth they loyalty to you. There is one universal truth: you can’t “steal” a happy customer. Loyalty and feeling special makes them feel like they belong and they will stay.
  3. Make sure the right person does the pricing and determines any exceptions.
    If you have to do the pricing, have someone other than you review it. If you have partners or staff or hate dealing with pricing, have all those who work with the product or service give you input. Then do your market research based on that legacy customer and re-check your numbers. See if it will support the positioning you have and the positioning you want to maintain. Finally, it’s better to still get someone not connected with your business to review what you’ve done and ask the hard questions.

I am proud to be the inaugural speaker for the new San Antonio Business Owners Meetup sponsored by the Business Bank of Texas. I will be talking more about legacy pricing and how to make sure you have a future. The meeting will be held Thursday, July 20, at Pappadeaux Seafood Kitchen, 76 Northeast Loop 410, San Antonio, TX. For more information or to register to attend, please go to http://www.meetup.com/The-San-Antonio-Business-Group/. I hope to see you there and get your insights into the best practices you are using for pricing.

If you have questions about your pricing or comments about legacy pricing™, please comment below.

Filed Under: Business Management, Business Process, Financials, Pricing Tagged With: , , , , , , , , , , , , ,

Leveraging Customers in Contract Negotiations

June 13, 2011 By Leave a Comment

Sometimes big & small can work together. Photo by Daniel Voyager

My colleague, Dan Diener, was working with client who was re-negotiating an existing contract that was up for renewal. It ran into a snag because the contract was for a higher amount than the previous year in order to be in line with our client’s other contracts. This was crucial since our client provides personnel to others and significant benefits to his employees.

Our client, based in Austin, Texas, is a small business with a very large state client. Because of the nature of the industry and how these two organizations work together and share information, the decision was made to talk to the larger client about the situation. The result was a good rationale to stand firm on price by leveraging the larger client. Our client said no, he could not honor the same deal he had with the state client if he cut the price for this existing client. The contract was signed at the price our client proposed. Honor and ethics were well served as well.

This was an unusual situation. Frequently, a larger client wants a “discount” for the prestige of working with them. But, it can work in your favor when someone else wants the “discount”. Don’t feel you have to give in. Stand firm for your existing customers and leverage them when appropriate.

You can use this strategy also when dealing with Daily Deal coupon buyers who want more than they bought. You have negotiated a deal with an online coupon marketing company and you should stick to the deal. In a recent article Groupon Nightmares by Sarah Jacobson Purewal for Entrepreneur, she cites the case of Sound Roots, a music school in Oregon. When numerous people called to try to bend the rules and get more than the value of the LivingSocial coupon, owner Fara Heath, told her manager to say, “This is a very good deal, and take it for what it’s worth.”

Filed Under: Business Management, Financials, Legal, Pricing, Sales, Social Media Tagged With: , , , , , , , , , , , , ,

Want a Mentor? Look around you.

March 2, 2011 By 3 Comments

Business Success Center prospects tell us in their initial meeting they want a “Mentor”  to advise and guide them to solve a specific problem or achieve a specific goal.

I completely understand. I’ve had several wonderful mentors. My godmother, Northwestern University professor Alvina Krause, had “teas”. At these salons, I learned the fine art of  conversation. My grandmother taught me the importance of family. My mother  helped me find my voice and be comfortable being myself. She always said “we grew up together”.  Maybe so, but she was my guide.

There were important male mentors, too. My brother Bill (aka WC Triplett, II) has worked for Presidents and Senators, Tibet and Tiananmen, written best sellers and significant treaties. He showed me how important it is to get involved. Ed Van De Vort  gave me confidence because he believed everyone was capable.

But when it comes to a business mentor, there’s been no one better for thirty years than my husband and partner Daniel Diener. That’s what I told Patricia Rogers when she interviewed me for the Austin Business Journal‘s “Journal Profile” published last December.

As a matter of fact, I met Dan because I needed a mentor for a photography project. He has always been willing to share his time, knowledge and expertise.

A good mentor is a guide, encourager, teacher, strategist, supporter — an exemplary person you want to emulate. That’s Dan.

What have I learned from him?

1. To be entrepreneurial.

Dan was selling papers on a street corner in downtown Chicago at age 10. When he lost his job, he moved south to start again. He landed at PETEX (Petroleum Extension Service at UT) made movies, wrote manuals that were translated into 15 or so languages, and became Special Projects Director. When the bug bit again, he started his own company, Dan Diener Photography. I was not a risk taker. He showed me you can succeed on your own. Dan was and is an innovator. He truly understands what it means to create assets that make financial and marketing sense.

2. To be systems driven

Dan was a teacher in Wisconsin and you never forget that you have to stay ahead of your students. That means being organized and systematic to the Nth degree. With his creativity that meant that he is always looking to improve things without being rigid. I learned from him how business systems can be very creative and rewarding.

3. To know how to fight fairly

In a business, partners don’t always agree. Just ask Marsha Vanhorn, our Client Services Manager, who’s worked with us 12 years. Early on, Dan helped us set rules of engagement. He prepared us for tough times. And, we’ve stuck by them through thick and thin. I think that’s why our business and our relationship has survived and thrived. The funny thing is though, somehow when we disagree, even strongly, he always makes me smile. He has a great sense of humor and it just bubbles out in what he says and how he says it. I also thank him for introducing me to the O’Henry Pun Off, a great Austin, Texas tradition. (Maybe I’ll see you there on May 21.)

There are so many other things I have learned from him: versatility, resourcefulness, staying curious, balance, strength, and comradery. I couldn’t have a better mentor and partner. He means the world to me.

Dan’s birthday is this week. I wish him many happy returns and a big thank you for helping make my personal and business life exciting, rewarding, and very special.

Here’s to you, Daniel.

If you want a mentor, look around you. That person may be closer than you think. Who has helped you learn or progress?

Filed Under: Business Management, Business Process, Planning & Vision, Resources Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

6 Situational Outcomes™: Because Not Every Customer Wants a Solution

February 3, 2011 By 1 Comment

It’s common wisdom that what people want is a solution. There is even a school of sales training and many books around the concept of “solution selling”.

I disagree. Not everyone wants a solution, i.e. something solved.

Your best customer wants something specific to happen when they use your product or service.

Sometimes they want and need something else. Not everything is a “problem” for a customer; sometimes, it’s a “gap” that needs to be filled. I talk to my clients about “gaps” not “problems”.

I referred to these five valued outcomes in my “Best Practices in Pricing” session at ProductCamp Austin. (My slides from the session are on Slideshare .)

In my 30 years experience, there are actually six different results a customer values. The one to stress as a benefit and to base your product or services features depends on the Platinum Customer Profile™ of your best customers.

Your Platinum customer may want:

  1. Something solved.
  2. A problem reduced.
  3. A way to maintain the status quo.
  4. A potential problem prevented.
  5. An issue eliminated.
  6. An opportunity created.

I call this Situational Outcomes™ because it puts the emphasis on the right thing: results from the customer’s point of view..

Your product or service should do that. Your benefits and features presented in your collateral and website should reflect that. Your pricing should reflect the value the customer gets — is it high value, low value, moderate?.

TAKE AWAY: Before you offer to “solve” something, make sure you are really giving them what they want and value. The outcome they need may be different than you imagined. Just saying you have a solution is too simplistic and second guesses your client — never a good idea.

How do you determine what they want?  You ask. You listen intently to what they say. You respond accordingly with a product or service that can do this.

On my "Worth Reading" list.

Asking can be tough. One resource to give you ideas on good questions for all kinds of situations is Smart Questions by Dorothy Leeds (lots of examples)  and  Smart Questions by Gerald Nadler (process focus). You will find them both in my “Worth Reading” section of my blog along with other books I recommend.

I will be doing a webinar on pricing for the Business Bank of Texas on February 10 at 10am that will deal with this in more detail. On February 11 at noon,  I will do a pricing session for Tech Ranch. On March 8 at 2:00pm at Chase Bank (Northcross & Burnet Road), I will do a free RISE Austin session on the topic and be providing a Pricing Glossary &  Concepts sheet with over 50 top terms. If you would like a copy of this, please send me an email (triplett@bscusa.com).

This is a good update of the earlier book which I also like a lot.

Another book I recommend is by Thomas Nagle, the Strategy & Tactics of Pricing. It has inspired me for many years in its earlier version by Nagle and Reed Holden. This is another of my “Worth Reading” books.

Finally, when pricing make sure it does not violate laws including the Deceptive Trade Practices Act  of the Business and Commerce Code and Clayton Act (Robinson-Patman Act amendment).

What does your best customer want? Does your experience match mine that they are looking for more than just a solution? I would be interested in your opinions. Do you have books that inspire and help you formulate questions or give you pricing ideas?

Filed Under: Business Management, Marketing Strategy, Planning & Vision, Pricing, Sales Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , ,

Being Able to Visualize is a Mixed Blessing

January 29, 2011 By 2 Comments

Posts can be very personal. This one is.

Visualizing the needs & concerns Egyptian small business owners, their families and their employees like this man. Photo by Julie Gomoll.

I have a friend, Rasha, who is from Egypt and who has family there. My thoughts are with her and the wonderful people I met through the eyes, words, and pictures of another friend, Julie Gomoll.

Sometimes we say, “I can’t imagine” what it’s like. But I think business owners and other creatives can imagine in huge detail.

And, that’s what makes being able to visualize a mixed blessing. I saw this during 911 and hurricanes Katrina and Rita. I see it again here. And, media aside, it’s not due just to what we see and hear on TV, radio, and the Internet.

Friday, I went to my favorite bakery, Upper Crust on 45th & Burnet in Austin. I love the food and I enjoy talking to the managers and staff. Over the years I have found that many of them have other creative outlets — usually music or art.

The goodies were as good usual things but staff just seemed a little off kilter. I asked a staff person who is an artist and musician about what I observed because I was concerned. He didn’t talk about Egypt or other problems in the world but he was sensing or visualizing something that took him off his usual game. I had never seen him this way. He asked me my advice. I was stumped. That’s partially what prompted this post.

I bring this up because if you are an owner you have to visualize how to build your business so that it is sustainable and profitable. That means you can visualize and have nightmares about what can happen to it. So, you can imagine what’s happening to those business owners who are living through this uproar. You can imagine their concern for the welfare of their families and their employees and their families.

That’s not to say that people should not speak up and try to get rid of dictatorial regimes. It’s a recognition that there is more than just simple empathy at work here. It can be almost a physical reaction because you can realistically imagine what’s happening.

I am also not saying that non-creatives don’t empathize or feel in these big events. They do. I have just observed that the more you can visualize, the more you get caught up in this. I may be wrong.

If you have creatives on your staff, they may be visualizing things, too. They may not verbalize it but they can be off balance, feel overwhelmed.

My advice, talk about it. You and they need an outlet. Don’t just dismiss it. Be prepared. If I am right, it will happen again the next time the world seems to be going up in flames.

Are you seeing this in your business? What are you doing to deal with this mixed blessing in yourself and your staff?

In the meantime, my heart and mind are with all the people of the Middle East.

Filed Under: Business Management, Planning & Vision, Small Business/Entrepreneur History Tagged With: , , , , , , , , , , , , , , , , ,

Best Pricing Practices: 3 Right & 3 Wrong Ways to Price

January 12, 2011 By 4 Comments

Price right & reap your reward. Cartoon by Roger Stewart, Porthole Productions


I have proposed  a topic, “Best Practices in Pricing”, for ProductCamp Austin on January 15, 2011. If you’ve never been or ever heard of it, it’s a great day of free business information for product managers, business owners, and those thinking of starting a business. Attendees select the topics the day of the event so they get to hear what they are most interested in that day.

Although the session has sold out, there is a waiting list. I encourage you to get on it. For more information on Austin Product Camp, go to http://productcampaustin.org. For information on my session on Pricing and the 39 other great sessions, go to http://bit.ly/e6chc0.

If  you can’t come or can’t wait, I thought I would provide some things to think about to sharpen your pricing skills. At least this will get people to reconsider their pricing strategy — hopefully they have one.

3 Wrong Ways to Price

  1. Blindly following the pricing of your competitors – they may or may not be right or right for you.
  2. Not knowing your “true total costs” before you price.
  3. Not including profit, contingency & hassle-factor in your price structure.

3 Right Ways to Price

  1. Match price to preferred positioning.
  2. Choose a price that does not exceed “flinch point” of your desired Platinum Profile customer. (See my earlier post on Platinum Profile customers at http://bit.ly/arxFwB
  3. Use value- based pricing rather than just cost-based pricing.

If I do the presentation, I will be talking more about best practices that I use and giving some examples of pricing problems I have addressed with clients. It is a Town Hall session so I will also be asking for attendees examples, questions and best practices. My goal is for us to learn from each other. I hope you’ll be there to share your experiences.

Do you have pricing issues, questions or examples of good or bad pricing practices?  I want to hear from you. You don’t have to wait until Saturday.

If you are going to ProductCamp, I hope you’ll vote for my session. I really want to hear what experiences others have with pricing.

Filed Under: Business Management, Financials, Marketing Strategy, Planning & Vision, Pricing, Sales Tagged With: , , , , , , , , , , , , , , , , ,
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