Sherry Ellingson
There are so many areas that can make or break a business. My job is to look at the business's multiple areas as a single modality and how it affects the actual bottom. However knowing that all parts of the business need to be in harmony to create the positive outcome an owner is looking for.
There are those businesses that have a great offering and can make profits but eventually it wears off and the profits decline.
Today I am focusing on pricing for your services/products. In our current times when prcing is going up for everything, prices contiue to rise without increasing what the customer is getting. We have to remember it's basic economics and supply and demand is the only reason that prices can increase, but for how long?
Here are my simple steps to contemplate for your pricing on service or product:
1- Are you doing something you LOVE? Do you look forwrd to doing the work every day; not just the creative aspect of the business or getting paid. Those are good reasons but they can't keep you fulfilled. This translates in your service, prodcuts and quality.
What is the reason behind your service, store, spa, restaurant, ? Do you actually enjoy what you do or are you in it for the wrong reason? This is a whole different topic that I'll visit shortly in another blog. Make sure you are signed up for my emails.
2- Look at your pricing, really look at it from a different aspect and not yourself. Are you over charging? You may think well I have bills to pay, my rent is going up, products are expensive, etc. but beleive me there are ways to have a healthy bottom line and it's not by overcharging.
3- Know your clients. Know their needs and wants. People price shop and they don't want to over pay for a service or a product that they can find elsewhere for less.
4- How is the quality of your service and or products?
5-Organization: following up on emails, calls, appointments in a timely manner and treat it each interaction as if your business depends on it.
6- Customer service and professionalism.
This is HUGE! Your business will suffer if this is inconsistent. You will not be able to make it.
I have 2 examples to share. I have traveled to 2 different hotels and both are considered up-scale in two very different cities.
Here's the comaprison:
When we check in- both hotels check in with me to see how my travel was and the check in process was and to let them know if I need anything.
The first hotel the email is from the general manager, the second it's the activity manager.
The first hotel goes above and beyond with a check in tea/champagne and cake, the price includes breakfast for all of us in a 5 star hotel with whatever food and drink off the menu plus an amazing buffet that is fresh food, fruits and breads made that morning. The rooms are cleaned everyday plus a turndown service in the evening. Everything is restocked with high quality amenities including organic teas.
All of the employees smile, open doors and have exquisitie attitudes and manners. The price of the hotel includes access to the pool, mutliple steam rooms, showers and more that are clean and well stocked with employees cleaning and keeping up the place all day. When it's time for check out, they allow me to settle the bill the night before with a quick check in the morning we are leaving. They allow us to get our brekfast at 630 in the morning with a smile and positve energy. They help load our luggage in to the car. And finally the next day I get another personal email from the general manager asking me about our stay. He also wanted specific examples of anyone who stood out during our stay or not. I had shared our amazing experience and he wrote back thanking me. I have stayed here twice with the same consistent hospitality and care.
The second hotel never checks back in, there is a $100 room credit to use at the cafe or restaturant on the property. The pricing is so high that we can get coffee and a few breaksfast sandwhiches that lasts 2 days. This hotel also has yoga, pool and hot tub with towel service to use. But our last day there there were so many people in the pool with empty towels that it was impossible to get a lounge chair. The employees were not keeping up to see who was acutally using the lounges.
They charge an additonal fee per night for parking in their lot, eventhough there is no way of getting there. Meaning you have to drive to and from wherever you come from. The hotel staff are unfriendly and you get the impression they are doing you a favor by talking to you. The rooms are not stocked i.e lotion, soap etc. BUT they do have an overpriced fridge with low quality snacks and alcohol.
Upon check out, they would not let me settle the bill the night before. I had to be there at 7 am waiting for them to open the front desk to check out. The next day I received an automatic survey (not a personal one). I did give them a not great review and never heard back.
The first hotel I can feel how much the General Manager enjoys his job. I recenlty saw on LinkedIN he has been named as one of the most influential people shaping British Luxury and he is on the Walpole power list.
Well deserved.
Where would you spend your money and time? People do not go back, re-hire , buy products when they don't feel valued.
Plus people would rather do it themselves vs. paying for something that they don't find value in.
Please feel free to share your thoughts.
Warmly,
Sherry Ellingson
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