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Your EnterQuest Bulletin - Issue 262
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| Thought for the week: "One must draw back in order to leap better." French Proverb |
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In this week's issue:
Think about the value, not the price
When asked to define the value of their product or service, most businesses either quote the price they sell at or what it costs them to produce and deliver it.
Both answers are wrong - the value of a product or service is what your customer believes they are getting from you to satisfy their needs or problems, in return for the price they are prepared to pay.
This value can be measured in a number of different ways, and this is where you have an opportunity to create a USP, through providing unique value that your competitors can't match at any price.
Consider the following examples and see if you can relate these 'value measures' to your product or service.
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Is there something completely different about your service or in your product that your competitors haven't got?
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Is there a convenience factor that sets you apart from the rest? For example, free delivery, longer opening hours, online ordering, better credit terms, and so on.
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Are there any high perceived-value add-ons or extras that you can bundle with your product for free?
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How strong is your no-risk guarantee offer compared to your competitors'?
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What do you offer if there is a need for a replacement or repair?
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Can you offer some sort of extraordinary after-sales service?
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Will your product or service last longer than your competitors' offerings?
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Is there any technical superiority that you can offer where others can't?
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Do you have more options, versions, or variations in your service that give your customers more choice?
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Can you create a 'feel-good' factor where you can sell benefits that make people enjoy a feeling of belonging? This could be a club, or other membership scheme with associated benefits.
These are just a few common 'value measures' that can be applied to your product or service without necessarily having to increase your price or your costs. With a bit of creative thinking, you should be able to come up with similar ideas to add benefits to your service that your competitors currently don't offer and that your customers will easily recognise and appreciate.
Terms and conditions - hints and tips
Terms and conditions of trade set out your rights as a supplier. They can also be used as a negotiating tool, if used effectively. But what should go in them and how can you use them to your advantage?
When you negotiate with a customer, it's considered professional - not pushy - to draw their attention to your terms and conditions (or Ts and Cs). What's more your Ts and Cs are only valid if your customer accepts them before they agree to the sale. So they should be on every estimate, invoice, quotation and order.
Draft some Ts and Cs relevant to your sector. They might include:
Application - State that your Ts and Cs will apply to any contract you enter. Some buyers will try to impose their own Ts and Cs, so in this case it's negotiable as to which Ts and Cs are accepted.
Quotations - If you have been asked for quotations, it is essential to say they apply for a fixed period such as one month. Costs rise and circumstances change, so this clause limits your exposure to these changes.
Delivery - Specify the delivery place and times. If delivery times are outside your control, you could say that they are approximate. State when goods have been deemed delivered, and don't forget to state whether delivery costs (such as postage and packaging) are extra or included.
Copyright - If you sell a creative service, specify that the copyright and other intellectual property rights deriving from the service remain with you unless agreed with the client or customer in writing.
Retention of title - This can help you to recover payment if a customer goes bust, and is particularly useful if you sell goods on credit. You should specify that property in the goods will not pass on to the customer until you have received payment in full.
VAT - If you're VAT registered, state whether VAT is applicable and whether it is included in the price or extra.
This tip is an extract of an article from EnterQuest's sister publication, BETTER business magazine. Subscribers to the magazine can read even more articles to help them find and keep more customers, including:
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- Obey the sales commandments! You want to succeed in sales? Then obey the sales commandments! Brad Dawson explains the rules for sales success - they are easier to follow than you might think. (Issue 156, May 2008)
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- Avoid dead-end questions. One thing to avoid at all costs when dealing with prospects is asking a dead-end question. Instead, assume they have a need and phrase your questions accordingly, says Art Sobczak. (Issue 155, April 2008)
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Time to think weird! Some of the greatest inventions have come from putting together unlikely combinations. Could your business benefit from some weird thinking, asks Paul Slone. (Issue 151, November 2007)
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To receive a free copy of BETTER business magazine simply send us your name and address to enterquest@cobwebinfo.com, putting 'EQ magazine offer' in the subject box.
Each week we provide you with summaries of some popular or emerging business ideas in the UK and elsewhere around the world.
- Garage for hybrid cars. The Luscious Garage in San Francisco is a car maintenance garage specifically for hybrid cars. The garage has an environmentally friendly outlook and aims to be as sustainable as possible.
Regularly improving your vocabulary is not just about learning a new word and its meaning. It will improve your general knowledge and make you feel and act smarter in all sorts of personal and business situations.
Do you know the meaning of the word 'alternate'?
a) the opposite
b) occur in turn
c) another possibility
d) to rotate anti-clockwise
Answer at the end of the Bulletin.
The following topical business issues have been recently reported in the media. Did your radar pick them up?
1) Research from telecoms solutions provider Avaya has revealed that small business owners know that allowing employees to work from home one day a week can reduce the financial impact that unplanned absences can have, but which factor is preventing them from implementing flexible working policies?
a) security risks
b) productivity worries
c) technology costs
d) insurance complications
2) Many small businesses will have heard the Government's announcement that they can use the Supply2Gov contract portal in order to secure public sector contracts. Research carried out by the Forum of Private Business (FPB) in the last quarter of 2007 revealed that 28% of small businesses were put off bidding for such contracts because of what main reason?
a) the complexity involved
b) the costs involved
c) they lack procedural knowledge
d) they don't have the time
3) Despite worries about increasing food and drink prices, demand for which alcoholic beverage is at a record high according to the latest industry figures?
a) lager
b) cider
c) whisky
d) gin
Answers at the end of the Bulletin.
Broadband price comparison site
The Broadband Expert website enables you to compare your current broadband service with market competitors and calculates how much you would save if you switched provider. Additionally, there are comparison sections for business broadband and broadband services compatible with Apple Macs. You can also read up on related issues such as Internet security.
Small business software from BusinessITonline
BusinessITonline creates a range of online software for small business owners. Its applications are divided into five areas: calendar, cash flow, contacts, documents and marketing. You can sign up for free access to the basic features of each application. If you want to access the advanced features, you will have to pay. The site also features FAQs and handy 'find out more' sections about each application.
Free e-signature trial
E-signatures are growing in importance and popularity. BT Broadband Office is offering a free trial of its e-signature service. Small business owners can use e-signatures to sign, track and file contracts and documents easily. The application is web-based and users can trial up to five e-signatures.
Free tips for retail businesses
The Rural Shops Alliance website has a range of tips and checklists to help retailers improve their business. The tips are in PDF format and include tips on marketing, customer service, merchandising, store standards and promotions.
This book by ex-dragon Rachel Elnaugh looks at the dark days experienced by entrepreneurs when their businesses take a bad turn. She interviews entrepreneurs and unveils her own experiences of when she lost her successful business, Red Letter Days. The book analyses high-profile business disasters, how the business owners involved handled the outcomes, and what they learned from their experiences. Check out:
Just one word answer
The answer is b).
'Alternate' means to occur in turn.
The entrepreneur decided to alternate between working at home and the office. |
How's your business radar? The answers
1) The answer is b) - Small business owners are put off implementing home working solutions because of fears over worker productivity. Almost three-quarters of respondents admitted in the survey they were worried about this factor.
2) The answer is a) - Over a quarter (28%) of small businesses told the FSB that they were put off bidding for public sector contracts because of the complexity involved. The news comes as the Government promotes its public sector contracting site, www.Supply2.gov.uk.
3) The answer is c) - Whisky is in high demand, according to figures from the Scotch Whisky Association. Some experts are using the upbeat figures as an unusual means of economic analysis, taking into account emerging and retreating markets. |
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Good luck
The EnterQuest Team
This information is meant as a starting point only. Whilst all reasonable efforts have been made, the publisher makes no warranties that the information is accurate and up-to-date and will not be responsible for any errors or omissions in the information nor any consequences of any errors or omissions. Professional advice should be sought where appropriate. |
