Debunking the Hunt for a Recruiter

Graduation season always reminds me of insights I have gained from my favorite graduation speech of all time. In This is Water, David Foster Wallace begins with this anecdote: “There are these two young fish swimming along, and they happen to meet an older fish swimming the other way, who nods at them and says, ‘Morning, boys, how’s the water?’ …

Graduation season always reminds me of insights I have gained from my favorite graduation speech of all time. In This is Water, David Foster Wallace begins with this anecdote: “There are these two young fish swimming along, and they happen to meet an older fish swimming the other way, who nods at them and says, ‘Morning, boys, how’s the water?’ ...

Preventing Your Culture From Going to the Dogs!

Early in my career as a marketer, my best friend, Nancy Bauer and I had a marketing/special events company called Maslow & Pavlov. One day, we flipped a coin for who got what philosopher on their license plate and I lost – Nancy ended up with Maslow and I was “stuck” with Pavlov. I was disappointed because Maslow’s hierarchy of …

Early in my career as a marketer, my best friend, Nancy Bauer and I had a marketing/special events company called Maslow & Pavlov. One day, we flipped a coin for who got what philosopher on their license plate and I lost – Nancy ended up with Maslow and I was “stuck” with Pavlov. I was disappointed because Maslow’s hierarchy of ...

Never Lower Your Price

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In a nutshell: If you want to make money, you must value your services or products. And, that means you should never lower your price; merely offer less for less. When your customer wants something at a lesser price, reduce your offering to match the price, and don’t lower the price for a greater-valued service or product. In doing so, your value stays consistent, you will attract the right customers (and conversely, repel the wrong customers) for you, and you will make more profit over the long-term. Never Lower Your Price - Web and Beyond Blog

“Create different levels of service. Some people only buy the most expensive item. Avoid losing sales: offer a stripped down version of your product or service.” ~Beth Silver (in “107 Ways to Leverage Your Small Business Through Marketing & Public Relations”)

Small Business owners early on in their business’ lives find themselves with a particular dilemma. When you are starting your business you consider that any new customer is good for business! So, when they negotiate you down a third of your billable rate or 40% off your retail pricing, you accept with gleeful resignation. You have hopes that business will be different once you have a steady stream of customers. Why? After you have all these customers, you’ll have the bargaining power to raise your rates and really start to turn a profit, right? Sadly, this logic doesn’t hold muster for several reasons: you eat away at your passion by not valuing your most important asset (i.e., you), you attract the wrong customers which develops bigger problems down the road, and you create more financial problems than you solve by operating unprofitably early on in the business.

Consistent Value Is Getting Paid What You’re Worth; Ergo, Never Lower Your Price

Starting a Small Business is no joke, eh? It’s long hours, stressful, energy-consuming, and it can also be genuinely rewarding when you focus on your passion and skills, or your desire to overcome a challenge. You started your business to provide for your family, build a product or service that you can sell with the business and turn a profit, give back to your community, to fill in a gap for your retirement needs, or whatever other reason you had. In order to get up every day and do this, you need to be providing value to your customers but your motivation won’t stay very high if you’re not getting paid what you’re worth. I always tell my clients to price themselves so they are motivated to do the work. Who wants to get subpar work from you because you don’t feel like doing the work for the pay you’re receiving? This does a disservice to your new customers and to you.

The Ones Who Matter Won’t Mind and Those Who Mind Aren’t Worth the Worry

There’s a trick I learned in my teens. You take your 10 closest friends and add up their salaries, then divide by 10; this usually works out to be your salary. It’s remarkable how this works within a small margin of error for most people who earnestly do it. You are similar to the company you keep. And, that means that when you bring in customers who are all discount seekers and not best-value-seeking customers, you build up referrals to other discount seekers. Over the months and years, your business’ value gets eroded as you accumulate customers willing to keep driving down your price, not valuing you, and telling their friends and colleagues that they too can get low prices out of you. This hardly sounds like the best value for your time and effort.

Mo’ Money, Mo’ Problems…Uhm, No. Less Problems, Mo’ Money

For many years, I ran a commodity business. I was constantly pressured to lower prices and deliver the same great service. There were market and regulatory forces in play here that were beyond our control and so I grinned and beared it. Learn from my early mistakes in the business. Don’t lower your price unreasonably to save your business as it won’t actually save your business. I see this often now in coaching and consulting Small Business owners in this downward spiral, before I set them straight. Here’s what happens:
  1. You lose your passion and start cutting corners.
  2. You start to lose your best-paying customers who start to see the lower quality of your work.
  3. The decrease in good business makes you desperate to (a) bring in more underpaying and delinquent paying customers, and (b) not paying yourself and your own bills.
This cycle of lowering prices leads to lost passion, lost productivity, and lost good customers. The gains unfortunately are in greater customer service complaints, attracting worse customers, and more pressure on you to take on anything that comes your way. You’re worth every dollar you’re reasonably charging, so don’t let others tell you otherwise. You should get paid well to do your best work, and nothing less. And, you should work with good people who will refer you to good people, especially those that will pay their bills on time. Anything short of this and your business fundamentals are lacking. So, if you’re currently thinking of starting a business, or if you’re currently struggling, I hope this compels you to never lower your price.

You Really Did Learn Everything in Kindergarten

Glassdoor’s annual list of the “25 Best Jobs in America” would lead you to believe that all you need to succeed in business today is a degree in computer science, statistics, accounting, or math. Undoubtedly, the list, heavily dominated by tech and finance careers, will send thousands of anxious students (and their parents) to career counselors seeking ways to add …

Glassdoor’s annual list of the “25 Best Jobs in America” would lead you to believe that all you need to succeed in business today is a degree in computer science, statistics, accounting, or math. Undoubtedly, the list, heavily dominated by tech and finance careers, will send thousands of anxious students (and their parents) to career counselors seeking ways to add ...

Making a List and Checking it Twice: Gearing Up to Hire in the New Year

The holidays have arrived. What a wonderful time of year! Lately, I have been reflecting on the meaning of the old verse “for everything there is a season.” This oft-quoted saying reminds me that our lives are driven by a constant flow of change. I find that the key to my happiness and the health of my business can best …

The holidays have arrived. What a wonderful time of year! Lately, I have been reflecting on the meaning of the old verse “for everything there is a season.” This oft-quoted saying reminds me that our lives are driven by a constant flow of change. I find that the key to my happiness and the health of my business can best ...

We, Not I, Would Like to Help You With That Recruiting Challenge

For some time now, Frederique Campagne-Irwin of Her Corner has been challenging me to move TalentFront from a personality-driven business – selling oneself — to the next level of sustainability – selling a solution.  I understood the concept, but I didn’t really understand what that meant, at a gut level, until I passed up an opportunity because I could not …

For some time now, Frederique Campagne-Irwin of Her Corner has been challenging me to move TalentFront from a personality-driven business – selling oneself — to the next level of sustainability – selling a solution.  I understood the concept, but I didn’t really understand what that meant, at a gut level, until I passed up an opportunity because I could not ...

The Real Cost of a Bad Hire

There is nothing quite like that moment when you find and extend an offer to the right candidate! You just know that bringing her on is going to have an awesome impact on your business and you can’t wait for her to get started. Only sometimes, that impact isn’t awesome. Sometimes when the new hire starts working, she doesn’t click …

There is nothing quite like that moment when you find and extend an offer to the right candidate! You just know that bringing her on is going to have an awesome impact on your business and you can’t wait for her to get started. Only sometimes, that impact isn’t awesome. Sometimes when the new hire starts working, she doesn’t click ...

Advice to Government Contractors for Fiscal Year End

We’re less than a month away from the end of the Federal fiscal year, and we know our clients may be wondering about what they should do to prepare. So, we asked John Boulware, our Federal Government Contracting specialist, if he had any advice for our clients. His response is below: All government contractors should be… Read more »

The post Advice to Government Contractors for Fiscal Year End appeared first on Alexandria Small Business Development Center.

We’re less than a month away from the end of the Federal fiscal year, and we know our clients may be wondering about what they should do to prepare. So, we asked John Boulware, our Federal Government Contracting specialist, if he had any advice for our clients. His response is below:

Federal Contracting Fiscal Year EndAll government contractors should be bracing for another round of cuts forced upon Federal agencies by sequestration. Some contractors will be surprised at the cuts they must absorb or the option years that are cancelled as a result of painful cuts forced on many Federal agencies.

Agencies will be forced to make some more hard choices, as they have done in the last few years. Some of these choices may simply be made based on how well the Federal agencies know and trust their supporting contractors or on how closely connected contractors are with agency program staff who have the money.

If you have not maintained really close contact with your Federal client’s program staff, it may be too late for you, but don’t give up yet. Stay close to your client’s program staff in September and October. Meet with them as often as possible hoping that you can build on the good relationships you have developed over the last few years and convince your clients that your firm is the one they must protect.

In meeting with them, make sure you have a purpose your client will appreciate. For example, ask to meet with them to explain some adjustments you think you can make to bring added value to your contract. Then, when you meet with you client, be specific and show the added value.

If you have additional questions about government contracting, please visit our government contracting resource page. If you would like to set up an appointment to speak with one of our government contracting specialists, please complete our request for counseling questionnaire.

The post Advice to Government Contractors for Fiscal Year End appeared first on Alexandria Small Business Development Center.