Pricing Your Products

One of the areas that many businesses struggle with is pricing of their products. Many times these prices are set low at the beginning of a business startup or just a guessing game for the most part. There are different methods to determine pricing for your business such as tallying up every cost associated with a product plus profit, charging by the hour, or bidding on projects with a fixed price. I as well as many have tried all or many of these and they are a constant struggle to keep in line. If we were all like Walmart it would be a little easier however the nature of many businesses does not allow for a one price fits all type of pricing strategy.

The first step to knowing how to best price your products is to know your costs, how long does it take to manufacture, what materials are involved and so on. The next step is to know what the market will bear, are you in line with other suppliers of your product types and what is the norm of the market. The third step is knowing what are the unique selling features for your product, do you offer a special guarantee, extra benefits, different materials, what is the customer getting from you that they are not getting from your competition? Armed with that information you are able to decide where to position your business among the competition and on what type of criteria you want to promote in your marketing plan. Try not to compete on price as competing that way will put you close to the bottom of the rung in competition and kill any benefits that you may offer.

Once you have your unique position laid out you are ready to start marketing. I find one of the best ways to work is to have a standard price that can be adjusted based upon the clients demands or project scope. This gives you some flexibility but gives you a good starting point. Evaluate your pricing on a regular basis, I usually adjust our pricing at the end of our year end each year some products go up, some get thrown out if they were not working and others may stay the same if they are working well. Try not to change pricing in the middle of the year if possible as it creates confusion for your staff and customers. By waiting until the end of the year you can have a total look at the way your business operated over the year as a whole as opposed to one quarter or short timeframe. Pricing evaluation is a continual process so make sure you are always evaluating what is working and what needs work.

About the Author

Bruce Outridge is a business and leadership consultant for entrepreneurs and the transportation market. More information can be found on his website at www.outridge.ca

Are Your Staff Killing Your Business?

As owners and entrepreneurs we understand the amount of work it takes to get a business off the ground and running successfully. We also know that without great customer service your clients won’t be back to do business with you again. When I talk with entrepreneurs they get it, they understand the importance, but the real question is, does your staff? Could they be turning away your clients before you know about them? This is where monitoring your staff and having trusted staff go along way into making sure you have a successful business. Let me give you an example of what I mean.

Five years ago my wife and I were on vacation in the Caribbean, we had a wonderful time and went to an upscale restaurant well known in the area with a beautiful setting. Earlier this year we were back in the same location for our wedding anniversary, with no plans for dinner we decided to go back to the restaurant we had enjoyed so much on an earlier trip. Now the island we are visiting is based upon tourism, that is their major industry and with a bad economy over the last few years they have been hit hard and you can see it in the businesses that were closing down. With businesses closing down, we were there over a slow period of the year you would think that any business would be happy to have clients visiting their establishment. So we decided to visit this restaurant without a reservation. Although we weren’t dressed up in suits we did have collared shirts and shorts which is the attire in most establishments in the Caribbean. Upon entering the restaurant which only had six people in it and an empty parking lot we felt we would be welcomed to dinner. When we asked if we could sit outside we were told that they had brought in the tables and chairs due to the rain that day. I would have believed the hostess except for the fact that we had spent the day on the beach right beside their restaurant and it had been a perfect day without a cloud in the sky. When we said okay we will sit inside by a window we were told we had to sit at the bar and wait for a manager to see if they could find room. With a restaurant that could easily fit over 200 people and only six people in the restaurant this seemed like another line to get us out of there. So they won, at that point I had enough and my wife and I walked out and ate across the street. What they don’t realize is that we passed by that restaurant all night as it was by our hotel and the parking lot remained empty the whole night. We also met many people during our time there and they all have heard the story and some of them had even experienced the same greeting from the hostess. Why advertise if that is the type of greeting people will get at the door? You may as well shut it down now. Lying to your customers is a sure fire way to go out of business. Remember every negative comment costs you 100 customers. That is the average amount of people that will be touched by that one person.

Remember first impressions count and the people in your front line you need to trust they are helping your business not hurting it.

About the Author

Bruce Outridge is a business and leadership consultant. He helps companies improve their customer service and client base. For more information visit his website at www.outridge.ca

Creating a Link to Success

Buying a truck and getting it on the road for a new owner operator is no easy task and for some can be downright daunting, but it doesn’t have to be. The way to go about it is to make a list and start setting things up in a logical order. The way this is done is through the development of a business plan and should be done before you have bought the truck. If you missed that part and are already rolling along in your first year then it is not too late you just may have to back up a few steps to arrange things properly.

If you are already leased on with a carrier then you should go back through your contract and make sure you understand and have met all the obligations you signed up to do. If there is a holdback at the company then how much is it and how much do the take off each statement? I talk with many drivers who have no idea how much they pay for things or how their statements work. Do you have the appropriate insurance for your vehicle and yourself. If there is a breakdown do you have a way of repairing the problem and getting assistance? The next step is to set up your budget so you know how many miles you need to run each month to break even. This an important step that most people miss and It is one of the most important steps for an owner operator. The next step is to set up a plan of action for moving forward, what are your short and long term goals? How will you achieve them and create a successful business?

You are trying to create a snap shot of your business today and create a snap shot for tomorrow so you can create a link to make your business successful. The more effort you put into this part of the process the better off you will be and the more successful you will be tomorrow.

 About the Author

Bruce Outridge is a business and leadership consultant for the transportation industry in Ontario Canada. You can read more about him and the services he offers on his website www.outridge.ca

Bruce Outridge is presented with leadership award at Brampton Truck Show

Bruce is awarded the Road Today Trucking Ambassador of the Year

Road Today Media Group along with Honorable Jason Kenny presented me with the Road Today Ambassador of the Year Award for my extraordinary service and dedication to the trucking industry. It was an honour to be presented with the award by Road Today Media Group.

Bruce is awarded the Road Today Trucking Ambassador of the Year

The Power of a Budget

Ah the budget process, nobody likes it, we all shy away from it, yet it returns to haunt us every time. People shy away from it because it shows them where they really are with their business and their life. It can be a very daunting piece of the puzzle but is one of the most important items you can complete when becoming an owner operator. If you try to get away without completing the budget process you will find that you will be at a loss as to where your money has gone. I believe that is why many people don’t do the budget because they feel they will have to stick with it or they will be a failure. The fact is that you risk failure without it. By missing this important item you will have nothing to compare your profit and loss statement to know how you are doing in your business. I recently met with some owner operators that were just starting out. They felt the best way to approach compensation with their truck was to take half the money for themselves and leave the rest for their truck. When we completed the budget they could see that they were quickly taking themselves deep into the barrel of despair.

If you are an owner operator it is your duty to run your truck as a business owner, it is your job to make sure your company is running successfully. A budget will be one of the first things you do to make sure you can afford to run your business. You should then match that budget with your profit and loss statement on a quarterly basis and again at the end of the year. Review items that seem to be out of control and look for other options that may help bring your budget back in line. Remember that this process is ongoing and not something that should be done just once and then stopped. The true successful business owner is watching their business for opportunities and ways to improve their success rate.

 About the Author

Bruce Outridge is a business and leadership consultant for the transportation industry. He helps people set up their business properly and guides them on the road to success. More information can be found on his website at www.outridge.ca