Choose right to guarantee your business and life success

 

Advertise from within and increase profits. This equation seems simple, especially with a glimpse of examples such as Costco, which fills 98% of store manager positions from within the organization and has a low industry turnover rate below 6% after the first year. in this article we are talking about price of everything and Success of Life and Your Business.

Mark Murphy, CEO of Leadership IQ and author of One Hundred Percent: Challenge Your Employees to Give It Their All, and They Will Give You Even More, Commits to Leading Employees to the Food Chain Your job is to create leaders. Within the company is very important to achieve the result.

“You use the accumulated knowledge not only of the products and services you offer, but also of their deep understanding of the company culture, what is effective and what is not,” says Murphy. “This is a great learning curve that you should invest in when hiring a new person.”

There are other benefits to cultivating leadership within your organization. For starters, there is a much lower risk of failure or erosion when people come in from new situations. “You already know that this person is successful and works in your team,” says Murphy. Culture Let’s Grow Together It also sends the message that every worker’s efforts are important, valued and valued for the long term. It also creates an environment that encourages innovation and creativity. “The message should be that the best idea wins, not the top idea,” Murphy says.

Here are some ways to create a culture that produces loyal, innovative and productive employees:

Smooth the organization as much as you can. By eliminating management levels between CEO and employees, it becomes easier to share goals, ideas and other communications, including criticism and praise.

• Give people freedom to create. Take a look at Google’s 20% app, where employees are encouraged to spend a fifth of their working hours on a passionate project — which is credited with the growth of Gmail and AdSense, among other highly profitable products. “The philosophy is that when you give employees space to innovate, you come up with really great ideas in response to customer demands,” says Murphy. “This eliminates the banquet or famine for development.”

• Make it a meritocracy. When faced with a specific company challenge, place it in front of the entire organization. The best idea wins, no matter who comes up with it.

•Empowering employees. To bring these great ideas to market, employees need to know that they have the resources and the freedom to view them.

• Create a culture of improvement. Hold monthly meetings where each employee is asked, “What have you progressed the most in the past month?” And “What do you want to improve next month?”

• Recruitment to fit the culture and growth potential. Murphy recommends the interview question: “Tell me about a time when you had something you did not know how to do. “How did you respond?” It helps to identify not only innovative thinkers but also self-directed learners.

• Fire effectively. Murphy strongly warns against successfully mistaking longevity. “The tenure is not necessarily culturally appropriate,” he says. Examine whether an employee is promoted for the wrong reasons: Does the current manager no longer want to deal with him? Is the employee a “talent assassin” – someone with great hard skills who is not culturally fit for an organization? Promoting or even retaining these people can be a toxic force in your company, as it sends the message to other workers that bad behavior is acceptable.

How to choose between 3 smart pricing strategies

To effectively price your products and services, you need to choose one of three general strategies: lowest price, best product or best overall solution. Without committing to one of these, you will lose business or cut profits. Here is an analysis that will help you find the right position for your company.

1. Lowest price (like JetBlue)

When you decide to go it cheap and risk the low bandwidth, you are only fooling yourself. It is difficult to maintain this market segment. You need to constantly work on reducing your internal costs, from the cost of the goods you sell to the salaries of your employees and the location of your office. By controlling costs, you can transfer savings to your customers.

Instead of making more than one sale or deal, you make more money by selling more. By removing price as a barrier, you reduce your customers’ resistance to buying from you. If everything is equal, why should anyone pay more?

An ideal example of this choice is Wal-Mart, which has built a procurement system that reduces all costs of offering low prices on everyday items. JetBlue Airways is also committed to this strategy, with very low fares, classless seats and low passenger rates.

This is not something that these companies do every occasionally. This is their strategy, and unless you can cut costs enough to turn the price to your advantage, this probably should not be your strategy.

2. The best product (like Mercedes Benz)

The second possibility is to offer a product, service or solution better than your competitors do so that people pay for it.

This strategy is also not an easy choice. First, you have to spend a lot of money on research and development to be the best. Second, you need to spend more on materials that allow you to be the best you can be. Third, you need to invest in the marketing you need to get your offers to people who want it and may be able to afford it.

Unlike your competitors who compete on price, you intend to sell fewer units, but at a much higher profit. The superiority of your product, service or solution makes it easy to say yes to your target market.

Known for its expensive cars, Mercedes-Benz is a great example of a company that has made that choice. This device uses the highest quality parts available and always has more technical specifications than its competitors have. The company spends a lot of money on design and user experience (for example, Mercedes is researching driverless vehicles and recently put the first driverless delivery truck on the road; Will supply the next seven years). The company spends a lot of money on marketing to enhance its first image quality.

BMW, Lexus, Apple and Samsung are also good examples of quality and high price choices, and you can place the Ritz-Carlton and Four Seasons hotels in this category based on their services.

Companies that use this choice of strategy are always competing for leadership.

3. The best overall solution

The third option is to provide the best overall solution for customers. You will not have the lowest absolute price or the best product. Instead, you are faced with the right exchanges that exactly meet your customer’s needs.

My house is near a Kruger and a Supermarket. I know Wal-Mart has lower prices, but it is a big store, so it takes longer to get what I need. I am not crazy about the shopping experience there – corridors can be crowded and payment queues can be long. Kruger is smaller and does not sell anything in bulk, but I buy from there because it has better experience, even if I know I will pay a little more.

I love the Ritz-Carlton hotels, but they are expensive. The Ritz has probably the most beautiful and best rooms – with large screen TVs, showers and a fully equipped minibar. Ritz empowers employees to spend money to correct anything that goes wrong to maintain their leadership reputation. Westin Hotels offers an experience that, while not quite similar to the Ritz, is superior to many other hotel chains. The vests have a modern look and feel – and have a paradise bed that is so comfortable that the in-room brochure explains how guests can order it for their home. Westin Hotels offers a solution for its most attractive customers, which is significantly cheaper than the cheaper chains compared to the Ritz.

Krueger and Westin swap positions to get the best overall solution for their customers.

Choose right to guarantee your business and life success

Why you should choose

If you are not satisfied with a single strategy, you will struggle for effective pricing of your offers. Straddling does not work, and here is the reason.

If you try to compete on price when this is not your strategy, you will encounter this scenario: When you left the customer’s office, a key decision maker said, “We would like to trade with you, but you have to be sharp. “Your opponent’s pencil is much cheaper.” You want this business, but if the lowest price is not your strategy, you do not match the price, because you eliminate the profit you need to offer the best product or the best overall solution. This is because you could not say more about the value you create – the reason why the customer is more likely to pay to do business with you.

To be the least expensive provider, you have to make choices that support that decision so that you can always compete and win prizes. (This makes it an easy selling option, but it is usually the hardest strategy to work with.) You cannot price without hurting your overall strategy to get more margins. You need to be willing to let go of customers who want more and are willing to pay for it.

If you want to be the best and sell at the top of your category, you need to price your product, service or solution to support the huge investment needed to continually improve your offer and jump into competitors. You should want to lose market share that will never be worth the money you owe.

The best general solution is the strategy of most service-based companies, even if they do not formally recognize it. By consciously committing to this option, you can make your offer more effective in attracting the right customers. To compete here, you need to clearly define your different methods and how these differences will help your customers get exactly what they need by buying from you. You probably will not have the lowest or highest price in your space. Your challenge is to attract customers and spend time developing a proposal that best meets their individual needs. Your price should support these development activities, which is why you will not be competing for the lowest price.

Make your choice and do it carefully. Your ability to properly price your offer depends on the strategy you choose.