Quality and price may be obvious, but it’s good to be reminded that these are really the continuing basis for business success. You don’t want to lose sight of the quality of your work and the price of your work or product.
There are occasions when you might have difficult choices to make in the products that you offer. You might have opportunities to cut the quality by buying cheaper components, thereby increasing your profit margin. You need to analyze the effect of these substitutions and cost reductions to make sure that they’re not easily perceived by the customer so they negatively reflect on you.
In a business where you provide a service, it’s very easy to reduce the services included and maintain the same price structure or charge extra for individual items and add-on services that were included in base prices before.
Be cautious. Don’t fall into a pattern of reducing your service but keeping the same price. You are much better off raising the price to reflect the quality service you’re offering.
A better option may be to reduce your services and lower your price on one package so you can offer a multi-tiered approach or pricing plan.
Until next time.
To Your Success,
Tim
