Increasing Profit / But Staying Competitive

tjrockjockwv

"So and So has it for $xxxx. Can you work with that price?", is a question I get more and more often. I call it Kicking a Nickel. But is the juice worth the squeeze? I mean does it really gain anything? The question I have is, what are some means of staying competitive on price but salvaging profit. I'd rather be able to pay my bills and make a little money off a lot of people, versus the other way around - a lot of money off a few people.

t.i.a. (thanks in advance)

Agent Smith

The objection you mentioned is pretty universal. In my mind this objection indicates that the prospect doesn't perceive a difference between what I'm offering and what the competition is offering. Instead of selling "price" I would differentiate myself and build a gulf of "value" between myself and my competitor.

tjrockjockwv

awesomely put (if that's even a word - awesomely) heheh

I've actually attempted (I wouldn't call it tried quite yet) that approach and it worked in the past on a few sales. But the first few times that I did try it was like flying by the seat of my pants. But, I guess that's the beauty in trying a different approach.

The business I have has grown quite considerably nationally due to internet / phone orders, but its grown to the point where I need to think about hiring someone to assist me in sales (emails, phones, etc.). I don't want to sacrifice service due to being overwhelmed, yet I want to make sure that I have someone that can produce just the same results as I have.

I've thought about scaling back from a national level down to a regional level, making the adjustment (adding team members), then slowly working my way back out nationally. Right now, local sales are just making an upward turn as the name is getting out and awareness is increasing. But I see still a little more risk in killing the more profitable sales territory (national) to develop a more manageable level locally. Catch my drift?

Agent Smith

Yup!

You and me both. Actually, it's probably more like you, me, and every other business owner. [Now, how do I get this darn cloning machine to work?]

I suppose the decision (local vs. national) would be best viewed by taking into account your desired outcome for the business. An example would be; what is your profitability now, where do you want it to be in five years, and which route (local vs. national) will get you there.

tjrockjockwv

That's part that I'm weighing now. I'm asking myself the following questions:

1. How big of a gamble is it and what aspects will it affect / effectiveness?
2. Based on consequence, can I afford to scale back?
3. What avenues / channels are available locally that can be just as profitable?
4. How do I effectively build up name recognition / awareness on local level as I did nationally.

and a few other hair follicle relaxing questions.

I'll admit, I'm still new at this. However, its not the first business I've started. But, its the first venture that has taken off considerably beyond my initial expectations.

However, I'm so thankful I've found a forum that I can read about real-world experience and technique. Thankful that I found salespractice. . .

SpeedRacer

What do you attribute this to?