Vancouver Business Coach | Why A High Closing Rate Is Not Good
Because that means a lot of people are buying an entrepreneurs products and services. Very high closing rate could also indicate. That prices are set to low. Which is why so many people are buying from the business.
Sometimes, business owners have their prices to low. Because they do not know. How to set their prices appropriately. Accounting not only for their materials. And their overhead. But taking into consideration.
The fact that they will eventually have a staff to pay. And they will eventually want to pay themselves a salary. However, some business owners. Have their prices set to low on purpose.
Thinking that the only way they can attract customers. Is by competing on price. Many entrepreneurs have this misconception. Believing the only way people will buy products or services from them.
Is if they have the lowest price. Unfortunately, this is not the case. If business owners want proof. That most customers do not purchase. Solely on price, all they have to do. Is look at themselves.
Do they have the most inexpensive cell phone on the market? Or are they buying the most inexpensive car to drive? Chances are they will have a fairly recent cell phone. Because the most inexpensive one.
Does not have all of the services that they want. Or the convenience in some cases says Vancouver business coach. They likely are not driving the most inexpensive car. Because they want one that suits their needs better.
These needs could be things like bigger trunk space. For more cargo room. They could require a truck, for hauling large items. They might want something that is more luxurious. Then the cheapest car can afford.
Even if they look at their own clothing. They will realize that they are not buying the most inexpensive. Clothing to wear, and they are often buying. For comfort, style and brand name.
Therefore, they should realize that the myth. Of competing on price is just that, a myth. They should look at their own businesses differentiation factors. And figure out how they want to stand out from their competition.
They want to provide the best convenience? Being located close to their ideal buyers. Or, being willing to deliver their products or services to their customers? Perhaps they want to compete on the highest quality.
For example, in the materials that they use. Or they want to stand out because they have the best service. Regardless of the reasons why an entrepreneur. Wants to stand out from the competition.
These are going to be the things that attract customers. And the customers that hold those things in high regard. Will keep coming back says Vancouver business coach. As long as the business keeps delivering those things to them.
Vancouver Business Coach | A High Closing Rate Is Not A Positive
When entrepreneurs have a high closing rate says Vancouver business coach. That is usually an indication. That they have priced their products or services to low.
The reason why, is because a business should not. Appeal to every single person. Because there is no way that they can sustain that type of business model. If they are setting themselves apart and providing great value.
They can increase their price. And the people that are holding those values. Will continue to buy the products or services, and that. B what entrepreneurs should aim for.
If an entrepreneur has their prices set to low. They are essentially working for free. Because prices set to low. Means they are not bringing in enough revenue. To pay their own salary. Many business owners have the mistake.
Of thinking that they have to cover. Their material expenses. Without taking things into consideration. Such as their overhead. Even when their overhead is very small in the beginning.
Business owners should consider that they will. Eventually have more overhead. As well as staff, that they need to pay. And things like machines, help them. Make the products and services that they sell.
Therefore, if entrepreneurs have a very high closing rate. They should check to ensure there prices are not set to low. If there prices are set to low. A business owner is essentially working for free. And if they do not fix it.
They will always end up. Working for free, because it is harder to increase the prices. Once you have an established business. With an established customer base. Also, in addition to not being able to pay themselves.
Prices that are set to low. Means that an entrepreneur. Will not be able to hire the staff they need. So that the business owner. Will be forced to continually work in their business says Vancouver business coach.
And while it is necessity. That has a business owner. Working in their business when they start. A business owner’s goal should be. That they are always trying to eventually get out of working in their business.
And hire staff that can do all of that work. So that they can focus more. On the activities designed to grow their business. Activities like marketing, sales. And scaling their business up. If they do not have time to work on their business.
Because their working in their business. Then they are going to struggle for the rest of their business. Vancouver business coach says most entrepreneurs fail. Because they run out of money.
Which means any entrepreneur in business. Needs to look at their pricing structure. See if they are pricing themselves out of business prematurely. The sooner entrepreneurs can do this, the more likely they will be at succeeding.
For more help, entrepreneurs can contact. Inspired method marketing and coaching, by phone or email. Working out of Vancouver, business owners will be able. To get the help they need to finally grow their business.