What You Need to Know About Value-Based Pricing

Today, businesses including tow truck burke va are increasingly operating online to capture a wide market. Pricing for products are services are now displayed online with customers having a plethora of options to choose from. Most companies are aiming at providing value in everything they do for their customers, and this has prompted the need to price their products and services based on the value they offer. Value-based pricing has a lot to offer. It is a solid strategy used by most businesses, has its pros and cons, as we are going to see in this post.

What is value-based pricing?

Value-based pricing is a pricing strategy used by businesses to charge products and services at a rate they believe customers will be willing to pay. This comes as opposed to calculating production costs and applying a standard markup. Instead, businesses gauge the perceived value to the customers and charge accordingly. Value-based pricing is common in different instances. First, it when it comes to recognizing inelastic demand. This is where the need for the product is so high that a lower price would have little to no impact on the unit sales.

Another is when there is a competitive and price-sensitive market. Since all levels, if competition usually settles at a price where consumers are willing to pay, and charging more could turn away interested buyers looking for a good deal. Another instance is what we call promoting prestige. This happens where markups will be higher than usual to denote the exclusivity and the grandeur of the product. A final instance relates to selling companions and add-ons to other products. With this point, it aims at enhancing the functionality of the product being sold.

Here are ways you can set your value-based pricing;

Analyze your customers

This is because your price points will be exclusively based on what your customers are willing to pay, and you will need to confidently know what price point is. One step towards reaching this number is to have contact with your existing customers who are familiar with your products and services, and learn what they would spend on your products, now that they see the value it offers. Note that the pricing approach should be based entirely on the perceived value of your customers.

Analyze your market

Another way of going about it is to analyze your total addressable market. While customer data is crucial in setting a price point, it will be a biased sample. This is because existing customers have proven they are willing to purchase your product. To reach an accurate price point for acquiring new customers, you need to conduct market research in your total addressable market to understand how everyone attempting to sell to, values your products or services, and what they are willing to pay for it. You will need to conduct a competitive analysis, especially if your product is new to the market. Look for the competition to see what they charge and how similar your product is to what they are selling.

A Simple Guide to Task Management

Task management is a pretty basic concept. It involves taking a task like equipment transport from its basic level to implementation. That involves its status, importance, time requirement as well as financial investments. If you are an independent contractor, task management tools and techniques will help you in crossing items off your to-do list. If you are working in a team, you can implement task management strategies to stay in sync, productive, and within the deadlines.

It is very important to place a priority on tasks to keep track of the ones that need your first focus and which ones you need to attend to later. While you are free to come up with your labels, the most common ones are ;

– Critical

– High

– Medium

– Low.

Additionally, you will not be able to know how much progress you have made on a task if you don’t keep track of its status. There will be new tasks whereby you have created a task but you haven’t started working on it yet. There will be those tasks in progress which you are working on. There will be those tasks on hold or postponed that you are temporarily pausing work on. Then there are finished tasks as well as deleted ones.

If you want to manage tasks in a better way, here are some of the tips you can apply;

Avoid Multitasking

We all struggle to stay focused on one activity or goal especially when something abruptly comes to our memory and you want it cleared as soon as possible. The key to remaining productive is handling one task at a time. Keep working on the original task you have scheduled and avoid distraction and attempts to work on a subsequent task. Remind yourself it will be more productive in the long run to stay committed to one task.

Centralize Everything

Along other similar lines, ensure all your tasks are well centralized. You might have a physical note or a piece of paper on your table, to ensure everything is well centralized and out according to plan. There are different apps such as Evernote and Trello, that can help you top stay more focused. Get an app that keeps all your tasks together in a centralized manner.

Break down tasks

You need to make each task as simple and actionable as possible. That means you must look for a way of breaking tasks into smaller actionable units. Break a complex task into small steps and procedures that need to be followed and see how easy it becomes to have that particular task implemented.

Add Everything

It is important to ensure you add every task that needs to be worked on. If a task doesn’t get added to your to-do list, it will normally not get done. Additionally, you will miss the satisfaction of ticking items on your list. You must keep a note of every task that needs to be done, both personal and professional ones. It is important you also set reminders and deadlines as well of the things that need immediate attention. If you have a lot of tasks to handle, ensure you automate everything.

Everything You Need to Know About Working Capital

Working capital is very important for the growth of any business, whether you are looking to expand, take in new projects, or remain afloat tough economic times. Working capital will support the running costs of your business and can help you outgrow your competition. Roof repair Fredericksburg and other businesses have been able to realize growth fast as a result of having a good working capital.

What is working capital

Working capital simply refers to the money you have at hand. It can be savings from your profits, a bank loan, or other means of raising capital. You use this capital to fund your day to day operations and cover all expenses. To calculate your working capital, you need to subtract your current liabilities from current assets. Current assets are cash and assets that you can convert into cash within a year. These assets may comprise of accounts receivable. inventory as well as short term investments.

When it comes to current liabilities, these are short term debts or accounts you need to settle within a year. They include accounts payable, sales tax, overdraft, wages, and payroll expenses. You should always aim to have more current assets than liabilities and have positive working capital. In case your current assets do not exceed your current liabilities, you will be faced with a deficit that could cause you problems paying a debt.

When you need working capital

There are two main scenarios to explain when you need working capital. To keep your business afloat when there is less money coming in. It can be due to economic slowdown or when you are involved with seasonal businesses. You also need working capital to fund the growth of your business such as expansion or opening new branches. You may be starting a large project in which you can only get paid upon completion.

There are a couple of strategies you can use to get working capital.

Speed up the collection process

Working capital shortages normally happen due to delays in receiving payments from clients. The delays will lengthen your working capital cycle making it take a longer time to convert your current assets and liabilities into cash.  You need to track collection time with clients to make it easy to know which clients are slow payers. You can also renegotiate payment terms with existing clients so that they can pay sooner. You can also invest in invoicing tools to help you get paid faster.

Request for upfront deposits

There is nothing more frustrating than a project coming to an alt due to a shortage of cash. Asking for an upfront deposit will give you some working capital to cover for the costs of your project. Deposits will also minimize the chances of non-payment. While deposits will give you extra cash, charging deposits is not always the best option. You may charge a deposit on a client during the first interaction, but waive it as you continue to trust the client.

You can also consider peer to peer lending and getting loans from financial institutions to bolster your working capital.

Ways to Boost Your Customer Retention Rate

If you ask anyone owning towing service in Cape Coral or any business, they will tell you their number one goal is growth. The key to business growth is acquiring customers, having a low churn rate, and keeping a consistent and growing revenue. However, the process of identifying, qualifying, and nurturing leads, and hopefully converting them into customers requires significant resources and getting your strategies right.

Instead of focusing on always acquiring new customers, it is important to ensure you invest your time and resources in retaining your high value existing customers. There are a couple of factors that will make your business unique, including the nature of the industry you are involved in, the size of your business, current brand awareness, relevance, among others. All of these factors will determine the cost of acquiring new customers.

Why Customer Retention

There are a lot of benefits associated with customer retention. You should know that about 20 percent of your customers produce 80 percent of your sales. Additionally, repeat purchasers spend more and normally generate larger transactions. They are also able to refer more people and bring more business. Customer retention is the basis of customer loyalty, and loyal customers are a powerful word of mouth marketers for your business.

Here are a couple of ways to boost your customer retention rate.

Adjust pricing for returning customer

You need to adjust your pricing in a way that makes it easy for returning customers to conduct more business with you. You can offer customers discounts via emails for their next purchases. You can also offer free shipping and returns as well as additional price-related perks for your most frequent shoppers. You can also think of a cost-effective subscription model for your business.

Implement cross-selling and up-selling

You should ensure you have strategies in place that promote cross-selling and up-selling. Customers should always check in with something extra while doing their shopping. You can up-sell customers in a physical store by placing related products next to each other and drawing the right attention to attract impulse purchases. For online shoppers, always include frequently bought together items next to any product they purchase.

Have a customer loyalty program

You need to have a customer loyalty program in place to reward your most loyal customers and build existing relationships. You can email your top 10 percent, customers, about a special offer you might have for them. The key to an effective loyalty program is testing and fine-tuning from the results you get from your experimentation data. You can expand your program by adding a points system to allows customers to earn points for purchases they make and social shares.

Meet your customers where they are

You will be able to deliver better according to customer expectations if you know the ins and outs of your customers, as well as meeting them at the places they like to visit online. Ensure your content creation program is on point and can resonate with what your readers want to see. Post your content on social platforms your customers like to hang around.



How to Keep Yourself Always Motivated

goalsDid you know that diamond is just a piece of charcoal that handled stress really well? Have you ever started a business, be it a tow truck or any other and was faced with a very difficult period you felt like closing down? Ever faced very tough personal challenges until you felt like giving up? Getting motivated and sustaining that motivation can be one of the toughest things you will ever face in life. It is not very hard to stay motivated if you so wish.

There are a few things you can change in your life and achieve a high level of motivation. Motivation is not magic and can happen if you follow these tricks.


Set Goals

You need to set goals and visualize them down to the very bottom detail. You need to see your goals, feel them, hear the sounds that accompany your goals and to the end results. An example is how top performing athletes create a visualization of their performance ahead of time and work it all in their brains across finish line.


Make a list

List Checkbox Checked - Free vectorYou need to make a list of the reasons you need to achieve your goals. The world is very busy and distracting, it can be very easy to get fully blown off. To achieve the success you might be chasing, you have to write down on a piece of paper. By doing so, you will be engaging your brain more actively in the process.

Break your goals into smaller chunks

You need to break your goals into smaller chunks and set intermediary targets that must be achieved for you to be on a path to achieving your dream. You need to have a strategy, but at the same time, you must be prepared to change it to achieve the best. Our greatest weakness as humans lies in giving up. Giving up should never be an option in our DNA.


Get the Help Your Need

Getting a help doesn’t necessarily involve talking to the whole village. Even if you can achieve all your goals alone, there is a very good reason to involve others in your plan and see the areas they can help. In most cases, we overestimate our abilities and that is one of the areas we go wrong. Sometimes, we are highly selective on who we tell our issues and this is one of the reasons we go wrong. You need to have a predetermined solution on how you will deal with a pressing issue.


How to Deal with Employee Go-Slow

slowProductivity is one of the most important things that any company has to deal with. While working at platinumaccesslimos.com, I learned that it takes more than monetary rewards to get employees moving and motivated for the tasks ahead of them. But how do you deal with employees who are chronically late and those who are not productive? If you are frustrated that employees are very slow, how do you deal with it?

Strict employees are slow just because they do not have a strict deadline on what they need to do within a certain deadline. A slow worker will reduce a team’s productivity as well as hurting his colleagues’ morale. When everyone is under pressure and obligation to deliver, anything that is holding a team back can be very demotivating. If you are looking to deal with slow employees, here is how you can deal with it;


Find the source of sluggishness

There might be a couple of reasons why someone is always slow in the workplace. You need to figure the problem as to what is contributing to the slow and sluggish behavior of the employees. You should never go into any conversation with an employee with a preconceived mind. At the same time, you should never become a perfectionist. Approach every situation with a positive intent.


Set clear expectations

You need to set clear and specific expectations. There are chances that your lagging worker is not even aware that they are slow in what they do. This is because they might not necessarily understand what they are entitled to do. It takes a lot of effort as a manager to show your employees what they ought to do and all the tasks and expectations they are supposed to deliver upon.

Divide up tasks

You need to break large projects into smaller deliverables. You also need to set out predetermined deadlines that need to be met without fail. This strategy can be very useful to those used to procrastinating. When you break a large project into smaller parts, people who struggle with procrastination may feel a greater sense of urgency to deliver on what is required for them.

You should also take time to learn what people enjoy doing. Find the projects people enjoy and give them such projects. Assigning employees roles on tasks they enjoy will make them naturally improve on their work. People can suddenly slow down because of burnout, but they will stand a better chance to deliver if they love what they do.

How to Manage Employees who are Older than You

manageNow that you are in a leadership position, you are responsible for managing a team of employees and executing all important strategies your team is tasked with. As a young manager, what do you do if you are tasked with managing a team of employees who are older than you?  You might also be dealing with a team that is potentially more experienced than you are. Although you may be qualified for your new role, you might encounter some older employees who may not give you the respect you deserve. So in such a case, how do you handle the whole management experience?

Get to know your employees

It is very hard for you to gain respect by commanding it. However, you should instead aim at getting to know your team members. After that, work at knowing their individual strengths and work habits as well as their characteristics. Discuss real issues as they approach and do not try to create labels around people. Understand and appreciate each strength everyone brings on the table. You need to be respectable, very curious and open-minded when dealing with your older team members.


You need to make changes where necessary, but at the same time, you have to respect traditions. When dealing with older people, it is very important to understand why they are doing things in a certain way, before making a decision to change the way they do things. Employees may think that you are shaking things up while targeting them. You need to make it clear that changes are important for the overall business good, and that you are not targeting anyone.


Be supportive and collaborative

In any team, there will be a substantial age difference between managers and other employees. Due to this, it is natural that some competition may arise. The young leaders may feel like they have all it takes to outdo the older ones and prove their competence. However, doing so may breed resentment and insubordination. As a leader, you need to go an extra mile to show your employees that you support them and that there is the need to work as a team. As your employees for help especially when it comes to learning new skills.



CommunicationYou need to communicate frequently and in a transparent manner. As a manager, you should never underestimate the importance of communication and giving feedback to other members of your team. When you notice that there is some work well done, give them a shout out and a pat in the back. It is also very important that you encourage the act and process of honest and open communication between members of your team.

Lead by example

If you want your employees to respect you and listen to everything you tell them, you need to set an example through leadership. If you are driven by ego and inability to lead effectively, you will be losing it. If other members of your team note your immaturity and inexperience, it will become very hard for them to listen to you. While it can be very hard to manage a team of older employees, it can equally be very rewarding in terms of experience in the longer run.



Top Policies You Need for Your Employees

employeesWhen you have a small team of employees, constituting an employee handbook may seem unnecessary. However, as your business grows and a number of employees exponentially increases, you will need a handbook that stipulates all the necessary policies that everyone in your company is bound to follow. You are not required by law to have a handbook, but having one will protect your business in big ways. It will also give your employees clarity and a reference point when they need to know how things are done.

An employee handbook is an important document that specifies your company policies, culture, and history for your current and future employees to follow. Important policies you should include in the policy include;


Onboarding on joining the team

One of the most important reasons to have a handbook is to spell out how new hires will be trained. You need to specify some basics that everyone should know before joining your company. There should be an employee clause, an equal employment opportunity statement, conflict and interest statement, confidentiality statement and other general details such as direction to offices, key contact information, team structure among others.


Standard of conduct

Every organization must have some form of boundaries. The standard of standard conduct should spell out the commandments for members of your team. This section covers issues such as the dress code, anti-discrimination policy, anti-harassment policy, substance-free workplace policy, taking disciplinary actions among others.


Office environment

policiesThis policy specifies how life is like being in an office. It explains how, when and where employees will be expected to get things done. In this policy, you will want to include things such as the working hours, any work-from-home policies, lunch and break periods, how to keep workplaces safe, how you will handle employees with a disability at the workplace, use of common equipment, among others.


Communication policy

The communication policy spells out how members and team interact with each other. It also spells out how members interact with customers, vendors and other partners. Some of the issues to be included in a communication policy may seem like common sense, but it will be very important to have them spelled out in writing for future references. Channels of communication such as emails and social media are also spelled out.


Compensation and performance review

This is a very important policy in an organization. In compensation and performance review policy, you look at issues such as the payroll schedule, paycheck deductions, job classification details, salary and bonuses, performance reviews, promotion and transfers, travel and expense policies among others.



The benefits policy is equally as important as the compensation and performance review. In this policy, you list out the perks that you offer to your team as well as matching up with the values that your business celebrates. You should offer a guide that spells out who is eligible for such benefits. Such benefits range in the areas of health, retirement plans, paid time off, parental leave, sick leave, jury leave among others.



Common Legal Issues Faced By Business

licensesWhen you decide to run a business, the world gets a bit more complicated. You will find yourself engulfed in a lot of legal tussles and decisions to make, that may make or break your business. You will also be faced with a lot of legal inconveniences that may have some unfortunate side effects. Here are common issues you must be prepared to handle, once you decide to enter into the world of business.



Licenses are one of the major legal issues you will face in your business. You need to ensure that you have all licenses in accordance to the requirements of your local government. If you decide to operate businesses without licenses, you will likely find yourself facing unnecessary fines and fees. The cost of various business licenses you will need will vary depending on where you are operating as well as the business you are involved in.



Trademark is also another important issue that small businesses normally face. You need to do a lot of research ahead of renaming or naming your business or even launching a new product or service. You need to ensure that you do not infringe on a trademark that is owned by another business. Infringing on another company’s trademark may cost you lot of legal fees and you need to be sure you avoid such.


Employee termination

Employee termination happens to many businesses. You may hire someone whom you thought to be well qualified, but soon or later realize you are losing money by keeping them around. Additionally, you might find that they don’t fit well with the rest of the team. They may be affecting the morale and productivity of the entire team. Because you can decide to terminate them, first you have to consider all legal repercussions. You need to spell out any disciplinary actions involving such persons.

Shareholders’ agreements

In the event that your business has more than one shareholder, an agreement will be strongly required. A day may come when the business is split up or even sold. In case there was no prior agreement, legal battles may arise and this can greatly affect the business. Even if the current shareholders are in their best terms, uncertainties may happen to make things sour up. Other legal issues you need to be prepared to handle include; overtime disputes, misclassification, and litigiousness. You should also be prepared to adhere to all tax policies.