Having a direct selling business (aka network marketing, mlm, affiliate marketing, etc.) can be very rewarding. But you can also lose a ton of money and even frustrate yourself if you fail to do a few simple things. Unfortunately, most direct sellers drop the ball and end up leaving tons of potential for reorders on the table because they are not taking care of the customers they have worked hard to acquire. The good news is you can end the frustration in your business and put yourself on a path of making more money and keep your customers coming back so they are ordering month after month after month. In this article, you will learn 7 simple steps you can take to add value to your local market customer 's buying experience, so they …show more content…
If it does not, do not sell it to them, not even at bargain price. 2. Do Not Compete on Price Competing on price can kill your profits and your business. While prices should be fair, be careful not to fall into discounting your prices just to get the sale. The facts prove that if your price is too low, people wonder why you are charging that tiny amount. Low bargain bin prices often create an image of junk. Remember that people buy from those they know, like, and trust. They will pay a fair price. The key is in your ability and skills to present value to your customer. Never price yourself so low that you cause your customer to think, "what 's the catch?" By offering a higher price, you are instantly creating less skepticism in the mind of your prospect. Now do not misunderstand what is being said here and price too high. Your price must be reasonably fair. Make sure your customer understands the uniqueness of what you offer and never compete on price. Set your price fairly and compete on a level of value. This does not mean not to provide discounts or rewards, but do not make pricing your primary competitive position in your strategy to acquiring customers. 3. Stand Behind What You Sell with a Strong Guarantee Make sure you offer a guarantee to your customers. I see too many direct sellers sell with a clearance no return no refund policy. Having such a policy can prevent
The company must factor in that each of their customers has lifetime value, a greater value than a small gain made on first sales. With competition in their sector, more penetration pricing would be appropriate. The penetrating pricing strategy would only make sense to retain customers; the pricing strategy must realize lifetime value, (University of Phoenix, 2011).
Increase the frequency of purchases by your customers. No matter how poor your current product or service, you must have some customers or clients. One key strategic dimension that you should be thinking about is how to augment and reposition your product in order to sell more to this group.
Customers want the business to produce quality products at reasonable price. You have different types of customers. There are different types of customers there are loyal ones, young ones, elderly, family or one-time customers.
Improve the customer service and make sure the customers give no complaints and make sure they are satisfied with all the services provided by the company and keep close contact with the customers and be very friendly with them and keep them happy. Give the regular customers’ high discount and encourage them to come more often. This is our main goal for us to achieve because we want to make sure the customers are satisfied with our services.
I will then make sure I create value for each customer segment and create a pricing structure that will align price with the value delivered. On the other hand, most of the customers usually perceive that the higher the price charged, the higher the value is attached to the goods they purchase or services offered. This also becomes a cutting edge in determining the pricing strategy to use as I anticipate my clients to perceive what I offer them to be of a high value.
I think we need to build better relationships with our customers. With our current customers, it seems as if we are constantly just a one-time kind of business. We do not want to be that, we want the customers to return because they trust us. Not because they consistently have problems even with our help.
The key to successful pricing is to match the product with the consumer's perception of value.
Price is defined as “The value that will purchase a finite quality, weight or other measure of a good or service” (Business Dictonary). When growing up your parents always said, this is too much money so you wouldn’t be able to get that candy bar or video game because the price of the product was too high. Whether this be because of high price the person that made this product had to out some research into the idea of how much they should sell this product for, how much profitability am I making at the end of the day after all deductions are taken out. The price is what set’s your product apart but a high price mean’s that you need to market the product very well to get people to buy it and build a quality product to get raving reviews. At Starbuck’s they always advertise giving you incentives and low prices. Summer time they do Ice Blended hour, which from 3 pm to 5 pm they offer their ice blended
When operations are overwhelmed by waves of new business, remember that a positive customer experience is at the heart of every healthy venture. Invest resources–capital, people, technology, training, etc.–to be sure you deliver on your promises. You can manage risk and preserve flexibility by hiring temporary staff or outside partners to help with delivery. Most importantly, ensure that an accurate customer feedback loop is in place, so that you can understand the value customers are receiving.
| b. pressure on you by your salespersons to lower the price so that they can boost their sales
When trying to determine the correct price, a number of factors must be considered: the market and its segments, the size of each segment, the ability to reach each segment, what distribution channels to target, whether to vary price by segment, the usefulness of promotional offerings, and whether the goal is to skim or penetrate each market.
The common mistake that most of commit is, jump with the overwhelming joy on hearing the low price quoted by the vendor. Always remember that there will be no company who just works with service motive without making profit. When the price quote is low, never
You should be tracking your cost, sales and profit. You will be surprised at how many resellers get into
Keeping these realities in mind, it is very much obvious that for this market, we choose and follow a value based pricing and do not keep the price of the product too high. It is advisable rather to follow an average pricing and let the consumers build some enthusiasm around the product.
Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).