Article of the Month
Variable pricing and promo pricing
by Tom Shay
Competition. Every small business owner I have met states that because of competition that margins on products and services have eroded.
The challenge I see is that many of these people see what their competition has as a margin on a few items or services, and mistakenly takes this margin as the margin on everything the competition sell.
This is not true! When you read this month's article, you will see how you can extend your margins. Take a few minutes to do this and watch how your margins can grow. The competition is not giving everything away at a low margin.
Click on Article of the Month to read this article.
Book of the Month
by Michael E. Gerber
With as many owners of small businesses there are around the world, you would think Michael Gerber would have written one about us.
After all, he has written books about attorneys, contractors, physicians, and accountants.
However, this month's book, e-Myth Manager is good for several reasons.
Many of us have an individual who is our manager. And many of us fail to do the responsibilities of the owner; instead letting our manager stand aside while we oversee the entire business.
I think there is a lot we can all learn from the book for May. Enjoy a good read.
Click on Book Referral to see the complete list of small business books we have found that can be helpful to your business.
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Stop that negative selling with some
Last month we discussed this situation I experienced:
On a recent trip to Las Vegas I had a couple of hours of spare time and was staying across the street from the mall.
I took it as a sign that I should go looking. There was an experience that repeated itself multiple times. Looking back, the experience is not unique to that date, that mall, or even to businesses that only sell products.
The experience is that of 'negative selling'. I think we need to teach our staff, and ourselves, to find a different method of selling. Here is an example from my shopping on that afternoon.
The customer walks into the business and asks to see a certain brand of shoes. The response from the employee was, 'We only have a couple of pair of that brand of shoes'.
Another employee joins in the conversation and their remark was, 'Gee, I don't think we have that many shoes on hand'.
Why does this happen? The reason is simple. The employee is paid to be there in the business; there is no reward for their selling merchandise or services. There is no penalty if they do not.
Sure, you can say without any sales we will have to terminate these employees as we will have no need for them. But can you expect them to see this connection? After all, your business has been there for years.
The employees you want are those that understand and appreciate incentives. Those employees that do not respond to incentives need to go work somewhere else. It is as simple as that.
What should you do for incentives? Look at the 'Incentive Idea of the Month', which is the last article in each month's e-ret@iler conversation. You can also purchase the 'Carrot' books by Elton and Gostick; they have some great ideas.
May 4-8 Small business week
Small business week has been around since 1963. There is even a presidential proclamation that goes with it. It comes from the Small Business Administration and for 2015 has a theme of, 'SBA: Dream Big. Start Small'.
Of course, the thing that I don't get is that the dates are May 4 through 8. Doesn't the SBA get it that few small businesses are a Monday through Friday operation?
Here is a link to the website:
National Small Business Week
The May e-ret@iler conversation brings Mike McCormick back to us. Mike is the CPA who was previously a small business owner. This means Mike understands the relationship from our side of the accounting picture. We are going to discuss why we should be having our annual meeting with our accountant in May as compared to February when so many businesses do.
The conversation will be Thursday, May 14. Details will be sent to you on Sunday, May 10 and again on the morning of the event.
|Internet Tip of The Month
Body language messages
The smallest part of the message your customer gets from an interaction with you comes from the words you use.
As there are three parts, the middle part is that of the tone of your voice.
The biggest part of the communication between you and a customer? Your body language.
Let me suggest you follow this link and look at the seven key messages that your body can be conveying to your customer.
We offer these with an explanation and a photograph. Better yet, we offer the photos in a variety of offerings so that you can choose the attire that best matches what you and your staff wear.
Of course, these aides for your business are free as are all the other tools on the Profits Plus website.
Body language messages
|The Incentive Idea of the Month
Send a deserving employee away
While there can be a sense of accomplishment when you and/or your employee achieves a goal, there can also be a feeling of a need for some 'down time'.
How about sending a deserving employee away? We used to have one for the Little League team we sponsored. The deserving employee went to the game to watch our team. After the game, the employee got to buy the post game snack for the team with the money we provided.
When was the last time you watched a Little League game? It can be a lot of fun. The parents of the players, the coaches, and the league enjoy having a business that has done more than just contribute money.
We want to recognize A Carrot A Day by Adrian Gostick and Chester Elton, whose book provides the basis for each month's incentive idea.