How to Successfully Price Business Services

Deciding to open your own business is a risky, yet exciting, venture.  One of the most important factors to consider is how to price your services so that you can make a profit.  Customers come to National Business Capital for help achieving their business financial success, whether through funding or merchant services, so we would like to offer the following tips on setting price points.

Many business owners feel they should undercut their competition when first starting out. Discounts may be given to family members, friends, neighbors, or anyone to bring in business.  This may seem like a good way to start, but there are a few problems it can create. First, can the business sustain itself on this reduced pricing? The business may be busy with work, possibly even overloaded, but still be unable to cover costs.  Second, pricing affects the perceived value of your services.  Set your price too low and potential customers may question the quality of your work or the need for the particular service you provide.

Raising the price of services often causes concern for business owners as they feel customers may be upset or not feel the need to continue the service at the higher price point.  Confidence is key here.  The business was created because there is a demand for the services provided and the business produces quality work.  Communicate with your customers to be sure they have a full understanding of the full value your business provides.  Highlight the areas where you go above and beyond your competitors. Higher prices means the business can sustain itself on fewer customers or with added employees.  Either way, staff will have more time to spend with each client therefore providing greater service.  The higher price point may also help attract the right customers, meaning the customers who understand the value of your business and the value of paying for quality products.

Take a look at the cost to you for providing the service and then determine a fair profit margin.  Customers understand that a profit needs to be made and will not begrudge a fair one, but may walk away from a business with a reputation for overcharging.

Research the industry.  Find out what competitors are charging. Review annual statement studies on small and mid-sized business financial benchmarks and be sure your profit margin is in the ballpark. Overall, have confidence in yourself and your business and the value you place on it.

Pinterst for My Business?

The use of social media in business is on the rise and business owners are learning that it is not whether they use it, but how they use it.  Keeping up with the constant evolution of social media can create a challenge for the business owner to implement the best strategy.

The newest social network to grow at an unprecedented rate is Pinterest.com. The site works as an online scrap booking community. The users create different boards on which they pin items of interest.  For example, a user may create a board for photography to include unusual photos they come across or may create a board for their favorite kid friendly recipes. The user may follow people who pin items they find interesting and can in turn re-pin the item to their boards.

Business owners have rapidly been learning the benefits Pinterest can have for their business.  There are many ways a business can utilize the site for their benefit.  Let's take a look at how a hair salon may use it.  The salon owner can create a board for each faction of their business, such as Wedding Styles, Color, Hair Care Products, Cosmetics, Hair Care Tips, etc.  The owner will then pin pictures of the styles they have created, the color treatments they have done, the products they sell, and tips to keep hair healthy or manage hair in difficult weather. Each person who follows the salon then shares all of these pictures and tips with their followers.  Comments can also be left for each pin. 

Suppose your business does not sell actual products, but rather provides a service.  Let's look at how a medical provider might utilize Pinterest.  The provider can create boards to offer education and tips to their followers.  For example, Preventative Care, How to Care for a Cold, The Benefits of Immunizations, etc. 

Pinterest is the HOT social network at the moment and offers business owners free word of mouth advertising and a free platform to showcase their work.  The staff at National Business Capital is always on the lookout for ways to help their customers become more successful. Pinterest may be useful tool to spread the word about your business.

Happy Workers = Productive Workers

Everyone dreams of having a job that they love going to each and every day.  As a business owner, hopefully you have created a work environment that you find enjoyable and you love the industry you work in. Now take a moment to think about your employees. 

Most likely your employees smiled a lot during their interview with you and "wowed" you with their enthusiasm for the position.  Their early days were likely filled with energy and aspirations.  How do their attitudes seem to be now?  Do you see smiles and hear friendly, happy voices?  Do they want to be successful not only for themselves, but for the betterment of your company?  Or perhaps, are your employees using a lot of sick days, coming in late, or rushing out a bit too early?

Research has shown over and over again that a happy employee is a productive employee.  Creating a positive work environment is not just a fringe benefit for your employees, but it is vital to the success of your company. 

Studies show that management styles may be the largest factor in employee satisfaction.  Whether you are the sole manager or you have a management team, help ensure that your employees are happily engaged at work.  Managers should show both the ability and willingness to help an employee achieve his/her goal.  Workers are more productive when they feel their work is meaningful and their efforts are appreciated.

Companies such as Google, Apple, Zappos, and Maya Design consistently rate as top companies to work for in America.  They all share similar leadership styles and focus on a positive company culture.  They believe in the research which shows that freedom and an enriched environment facilitates hard work and positive results. You can achieve the same results even if your company is not as large.

How you promote the positive company culture will depend upon your specific company.  Options available to some companies may not work for another.  For example, the opportunity to work from home when not feeling well or caring for a sick child may work for an employee who can do most of his/her work on the home computer.  A retail store can not utilize this option.

Adult workers today spend an enormous amount of their time working.  Look for ways to help improve the work/life balance and have fun.  Possibilities are flexible work hours, providing on-site child care or an on-site gym.  Perhaps you can give your employees their birthday off  or provide lunch for the staff once per week or month.  If that is too expensive, you can have a company lunch time every so often where your employees all take lunch at the same time and you facilitate games or bring in a movie.

The bottom line is that your employees happiness does matter.  Think outside of the box and find creative ways to engage them as well as problem solve.  Be approachable and open to new ideas and your employees just may help you design the positive work environment you all are looking for! We, at National Business Capital, hope you find this article beneficial!

Thank You For the Stellar Testimonials!

Here at National Business Capital we pride ourselves on our customer service. We are pleased to share some thoughtful testimonials from happy customers. Thank you for putting your trust in us!

"Funding in 7 days? I thought it was impossible, especially after getting my applications declined by my local bank and other companies. I am forever grateful that National Business Capital was able to help me when I needed it the most. You guys are the best. It was a pleasure working with you."-Gina, Hawaii-Retail

"A medical loan from National Business Capital allowed us to purchase new equipment which has helped us dramatically since our existing equipment needed to be replaced. I will never forget what you did for my practice. You were great. Everything was explained to me in detail and I could not have asked for more in a company." -Dr. Anderson, California-Medical

  

"I was having difficulty at my local bank obtaining an SBA loan to acquire an additional practice. National Business Capital was very knowledgeable and straight to the point. They told me what documentation I needed upfront and made the process a smooth one. I was able to get my SBA and open my practice much sooner than I expected. Thank you." -Dr. Ryder, New York-Dental 

"I just wanted to thank National Business Capital for helping us with our cash advance. It was great working with your entire staff. The entire team was extremely personable, knowledgeable and quick to respond to any questions or little hurdles that came up. We still can’t believe your replenish department was able to get us additional cash twice in the matter of months. We look forward to a longstanding relationship with you guys! Thanks again." -Denise and Jim, North Carolina-Restaurant

 "I was not comfortable with cash advance programs like this at first. I mentioned to a fellow colleague in the area that I was having some difficulty obtaining a business loan and that my application was pending for 3 weeks at my bank and then unfortunately got declined. He told me the terms he was able to get through them and I thought he was just boasting until I actually called them. I took his advice and I’m so glad that I did. The cash advance program was explained to me in full detail. The only question I had was “can they get me the money as fast as the said they would?” They had that question answered for me in 5 days when I checked my bank account Friday morning. I just can’t believe that National Business Capital was able to get me the money I needed, while the bank I have been doing business with for 12 years was not able to help. I know I can count on your staff in the future." -Dr. Chong, Ohio-Medical

How To Beat The January Business Blues

It is well known that the month of January can be a difficult one for many people in their personal lives, but did you know that the "January Blues" can affect a business as well?  National Business Capital has researched the many ways a business might be affected by the January slow down.  We offer the following advice given by business owners and experts.

The months leading up to the holidays are, for many businesses, extremely hectic.  Pressure for high sales may felt by employees across the board.  In addition to sales pressure, many additional year end tasks need to be completed.  Many business owners and employees work long hours and extra days to successfully get through the holiday season.  Once the season is over, a certain let down my be felt.

The sales are over.  The decorations are taken down and placed in storage. The holiday parties have come and gone.  For some businesses, January means long hours of inventory. The days are shorter and colder and many people feel they have little time for leisure activities.  All of this can have a negative impact on employee (and business owner) morale.

One suggestion we were given is to look at January as a time to better your business self.  Since this is typically a slow business time, take the opportunity to attend professional seminars or classes.  Go to some of those networking events that you always mean to attend, but somehow never find the time to. Bring speakers into the office to further your employees education.

While November and December focused greatly on your customers, why not take some time in January to place focus on your employees?  Again, with this typically being a slow time for business, plan some team building activities and/or employee appreciation events. Depending upon the size of your company, you may spend one on one time with each employee or department. 

January is also a good time to review your expenses.  A great way to boost your own morale is to find some areas where you can save some money.  Look at your phone and internet service as well as health insurance and price competitors.  Review all independent services such as accountant, copy service, mailing/shipping.  Be mindful of contracts and termination fees and plan when will be the best time to make changes.

Connect with your customers.  Depending upon the size and type of business, this may mean reaching out in different ways.  Send an email blast and ask for suggestions of what your customers would like to see in the coming year.  If possible, make personal contact with your clients to help them feel connected to you.  Offer special loyalty discounts/programs.


National Business Capital wants to help you feel motivated to make 2012 your best year yet!  Hopefully these suggestions will help!

NBC Fundraiser for Army Veteran Joel Barish

Come join us for a night of fun:

• Buffet Dinner
• D.J
• Chinese Auction
• 50/50 Raffle
• Cash Bar

Benefit will be held at:

February 2, 2012 at 7:30pm

235 Lake Shore Road, Lake Ronkonkoma, NY

 

About Joel

Joel Barish is a 64-year-old Army Veteran from Lake Grove, NY who had a massive stroke on November 26, 2010. This traumatic brain injury caused the right hemisphere of his brain to no longer function, resulting in permanent paralysis on the left side of his body, and paralysis and blindness in his right eye. He is no longer able to walk or care for himself, and is totally dependent on help from others, especially his wife and two daughters. He was in the hospital for 3 months and has been in a nursing home/rehab center for the past 8 months. As you can imagine, the cost is becoming unbearable for his family.

All of the proceeds from this event will go directly to Joel's Family, to help reduce some of the expenses associated with his continuing care.

For more information and to purchase tickets, please click here.

National Business Capital is honored to sponsor this event for such a worthy cause.  Please join us.

 

It's Not Too Late For A Holiday Mobile Marketing Plan!

With less than two weeks to go until the beginning of Hannukah and Christmas, many small business owners are carefully reviewing their holiday sales.  If you are looking to make a final push to maximize your holiday sales, it is not too late.  Consider implementing a mobile marketing plan.

Do you have a traditional brick and mortar business?  If so, create a Location Based Deal.  Claim your business on social sites such as Foursquare or Gowalla.  Customers will have the opportunity to "check-in" when they enter your business.  You can offer a special just for checking in or you can offer a special to the "mayor" who is the person who checks in the most often during a 60 day period.  Be sure to put signage in your storefront and advertise on your website and facebook page.

Create a Holiday Mobile App.  Even if you already have an app for your business, creating a special holiday app will attract attention.  Your special holiday app may include holiday specials, holiday hours, and even a coupon for post holiday savings.  Many easy to use tools are available for you to create your app.
 
QR Codes are rising in popularity. Use this special time of year to introduce QR code marketing for your business.  Again, there are do-it-yourself tools available or sites that will create the code for you.  QR codes are a great way to marry your print and online marketing efforts.  A QR code will lead your customer to a mobile site or a landing page.  Here you can provide important holiday information such as store hours and/or specials.  You can also choose to offer exclusive discounts to customers who utilized your QR code.

Implementing any or all of the above will help you maximize your holiday sales.  Spread the word of your mobile marketing by adding icons to your website, facebook page, and emails.  Have signs in your window and at point of sale. Encourage your employees to verbally inform your customers of the special deals they may be able to benefit from.

We at National Business Capital hope you find these tips beneficial!