Vancouver Business Coach | A High Closing Rate Isn’t Always Good

Vancouver Business Coach | A High Closing Rate Is Not Always Good

Most business owners think cost is the most important thing says Vancouver business coach. Therefore, they price their products and services. As low as they possibly can. Thinking that they will attract enough buyers.
Vancouver Business Coach

However, this is a problem for many reasons. When entrepreneurs are first starting out. They often have very little overhead. And do not have any staff, therefore. They can get away with charging less for their products and services.

At least initially in the beginning. However, the reason why this is a bad idea. Is because if people are not paying for all of their expenses. With their pricing, they will never be able. To grow, and add staff or pay themselves.

In fact, this is such a common problem. That out of all of the 50% of small businesses. That end up failing after five years in business. 29% of them say that they failed. Because they run out of cash.

If they are not charging enough for their products and services. Then they will never be able to grow and add staff. Or pay themselves. They will end up working extremely hard. And not make their ends meet.

Therefore, Vancouver business coach recommends. That business owners figure out. The pricing of their products and services. Early on in their business. And that they should understand early on as well.

That most people actually do not value. Low prices over everything else. If people want to test this theory. All they have to do is look at the phone that they have. The car that they drive.

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As well as the clothing on their very back. They would realize that they are not using the cheapest cell phone. They are not driving the cheapest car. Nor are they wearing the cheapest clothing.

Therefore, price is not the most important consideration. Other things that business owners should consider. That customers value more than price include. Convenience, great service and high quality.

In fact, Vancouver business coach says they should set. Their differentiation factors at almost anything. Over price, because the people who purchase. Based on lowest price are never going to be loyal.

They will switch to another company. Very next day if they can get it a dollar cheaper. Whereas the people who are purchasing. Based on other factors. Such as convenience, quality and service.

Are going to come back time and time again. These people will be the business owners niche market. And if they learn not only how to serve them well. But also, if they find how to get more of the same customers.

They can charge the prices that they want. To allow them to pay for their materials. Their overhead, pay for themselves and to hire staff. If entrepreneurs need any help getting to this point. Or figuring out if their prices are set to low.

All they have to do is pick up the phone and call inspired method marketing and coaching. They can set up an initial consultation. To find out more information on how to get the help they need.

Vancouver Business Coach | A High Closing Rate Is Not Always Good

Many business owners according to Vancouver business coach. Our incredibly busy, selling a lot of products or services. Thinking that they are going to be successful. But they will never be, because their prices are too low.

This is a common problem when entrepreneurs start out. Because they do not have a lot of overhead. And they are not paying their own salary yet. Therefore, they think all they have to charge.

Is to pay for the materials. Without realizing that if they price their products or services. To low, they will never be able to grow. And in fact, Vancouver business coach says they will have. Cash flow problems for the rest of their business.

The second most common reason why entrepreneurs fail in Canada. Is because they run out of money. Often, this is because they cannot find enough customers. But another reason why they ran out of money.

Is because there are not charging enough for those products and services. Figuring out how to price their products appropriately. Is one of the most important things. That an entrepreneur should do early on in their business.

However, for some business owners. It is not that they do not know how to set their prices. It is just that they are trying to keep their prices low. In order to attract more customers.

This is a huge problem for many reasons. First of all, this pricing strategy. Is not sustainable for the long term. Business owners need to make enough money. Not only to cover their immediate material expenses.

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But they also need to make enough money. To cover their overhead. Their own salary, and the salary of the staff that they are going to need to hire. They will not be able to afford increasing their prices.

On the customers that have been loyal. As they have more financial needs. Therefore, Vancouver business coach says. Entrepreneurs should figure out the pricing early on to start.

Therefore, business owners should consider. That a very high closing rate. Is usually an indication. That their prices are set to low. While business owners might initially think. This is a great start their business.

If they compete on price. Than their always going to be competing on price. And the business that is willing. To undercut competition. Will always win. And there is no loyalty in that strategy.

Instead, entrepreneurs should figure out what the market will bear. And figure out what their own differentiation factor is. Whether they are going to provide exceptional service.

Have better quality than anyone else, more convenience. There are many other factors. That can set themselves apart from their competition. And once they figure out there is, those will be the customers.

That they will be able to attract for their business. Customers that are interested in purchasing the products and services. Because of how they are different than the other businesses.