Putting a price on your products

Pricing a business’s products or services can be a difficult task, even for the most experienced business person. This is because the price a business charges its customers can have a direct effect on the success of the business, no matter the type of product or service being sold.

Pricing of products and services needs to take a whole range of factors into consideration. Many small businesses typically approach setting a price by considering the cost of the goods plus a percentage, establishing what customers are prepared to pay and keeping an eye on competitor pricing.

Here are three things to consider when establishing the right price for your business:

– Know your costs. Work out how much it costs the business to provide a product or service. This includes costs of delivery, total overheads, sales and marketing expenses.

– Determine how much your target market will pay for the product or service. Market research is often a good resource to find out how much customers are prepared to pay for things.

– Know what your competition is charging. It is highly likely that your target market will also be comparing the competition’s price to your own. Consider whether your product or service offers more or less value – if so you may be able to charge more or may have to charge less.

Building your brand on a budget

Many business owners would agree that there are more important things to spend money and time on than simply building their business’s brand.

However, having a strong brand is often quite vital to a business’s success. Effective brands – e.g. Coca-Cola, Nike, Bonds etc. – can make businesses stand out from the competition and gain customer loyalty.

Building a brand doesn’t always have to be an expensive endeavour. While it can be challenging, especially when dealing with the everyday problems running a small business throws at you, many entrepreneurs are finding that taking advantage of social media and other free online marketing opportunities can make the process a whole lot easier – and cheaper!

Here are some ideas small businesses can use to start building their brand on a budget:

Provide amazing customer service
Making your customers feel special and appreciated is a sure way of increasing the likelihood that they will tell others to do business with you. Ensuring that every customer interaction your business has ends on a positive note can fuel word-of-mouth ‘buzz’ around your business – an excellent way to build brand recognition and appreciation.

Get on social media – and be consistent
Sharing your business’s brand and overall message on social media is inexpensive and easy. It also is a good way to reach potential customers and keep track of your online reputation. Businesses can interact with customers directly via social media, which can help quicken response time in situations when customers make complaints or ask questions.

Offer a referral program
Providing customers with perks when they refer a friend or colleague to your business means they are much more likely to do it. Referral programs can generate more word-of-mouth marketing, resulting in more customers walking through your door.

What to consider before rebranding your business

Branding can help small businesses stand out from the competition and gain customer loyalty – but only if it is effective.

Businesses with brands that are confused, outdated or simply not appealing to the eye can hurt a business’s reputation and even repel customers. Businesses suffering from a branding problem may need to look at rebranding.

Rebranding should never be taken lightly –  it can be expensive, time-consuming and involve a lot more than simply tweaking a logo and hoping for the best. But it may be necessary to strengthen a business.

Here are three things to consider before embarking down the rebranding path:

Recognise your branding problem
Before committing to a rebranding strategy, ensure that you are fixing an actual branding problem; updating your logo won’t fix issues like slow customer service or poor communication. Identify why you want to rebrand your business and establish how rebranding will help fix your problem.

Plan to start small
One of the best ways to assess whether your rebranding idea is heading in the right direction is to start with small, subtle changes i.e. sharing a rebranded logo on your website or social media sites. Sharing this small change with your online customers can gauge customer reactions and even gain some valuable feedback as to whether they like the new you.

Consider hiring an expert
Rebranding can be especially difficult for small businesses who know their brand too well to be objective. This is where hiring an expert can come in handy. Using an expert’s unbiased opinion can often be invaluable when establishing a rebranding strategy.

Growing your business

It can be difficult for small businesses to grow their customer base beyond the realms of the local community. Generating new business, however, is fundamental to business success, no matter how challenging it may seem.

Here are three ideas small businesses can do to help keep their local customer base strong, while at the same time, spread the word about their business to larger communities:

Get on social media
To ensure your business is found online, set up a business profile on Facebook, LinkedIn or even Twitter. Social media can be a powerful tool to promote your small business to more customers, gain followers and increase your network by connecting to other businesses online.

Nurture existing customers
Most experienced business owners know for a fact that it is far more cost-effective to retain old customers than gain new ones. So make sure you continue to keep your current customer base happy. Always go the extra mile so customers will remember your business for its friendly service and therefore become more likely to refer other people to visit you.

Focus on a single service or product
Try tweaking one of your products or services to appeal to a new area or group of customers and focus on spreading the word on that one product/service. It can be easy to get carried away with the idea of being able to offer current and new customers as much as you can, but always remember that it is better to attract customers with one great product, than offer five or six average products/services.

Managing customer complaints

Customer complaints are an inevitable part of running a business. Managing customer complaints helps to retain existing customers and improve overall customer service.

It is crucial to deal with complaints in an appropriate manner as poorly handled complaints can see customers withdraw their business and encourage others to do so too. Here are four tips to deal with complaints effectively:

Actively listen
When approaching the customer, apologise for the matter and don’t blame others. Be sure to thank the customer for raising the complaint and listen intently, asking questions and summarising what they have said.

Focus on solutions
Discuss different options for fixing the issue with the customer. Be sure to clarify what they are seeking, i.e. a replacement or refund. Negotiate a solution that meets both parties needs.

Follow-up
It is good practice to follow up with the customer within a week to make sure they are satisfied with the outcome and the way the complaint was handled. Encourage customers to provide feedback so you are aware of any problems.

Assign someone to handle complaints
Assigning one staff member to manage complaints ensures the complaint-handling process is thorough and consistent. It also ensures the staff member has adequate customer service training and skills to manage customer complaint behaviour. Make sure there is at least one other person who you can refer complaints to when the assigned staff member can’t resolve them or is not there.

Tips for a productive office space

A well-designed office space is an effective yet inexpensive way to increase productivity levels and improve employee engagement.

Healthy office environments are centered around communication, interaction and flexibility between all staff. Here are a few ways to boost your office space to maximise productivity:

Lighting
Workplace daylight, outdoor views and a view of the surrounding area can all make a difference in improving productivity. Office spaces with plenty of windows and naturally lit common areas have been shown to impact on employee’s mood and general health. Where possible, consider using LED systems rather than fluorescent lighting as it allows adjustment to light intensity and colour throughout the day.

Ventilation
Offices with high air quality can significantly improve employee’s cognitive function and reduce illness. Healthy offices generally have low levels of indoor pollutants and effective ventilation. When choosing an office space, check paints and materials, such as carpets, are well maintained and do not emit toxins. Consider incorporating plants into the office to help filter out toxins and improve humidity.

Ergonomics
Employee comfort can be vastly improved with simple changes to furniture and equipment such as office chairs, desk height, dual-monitor set-ups, keyboard trays and mouse pads. Ergonomic office design can play a big role in improving employee’s overall health and productivity.

Claiming your business independence

Entrepreneurs are particularly independent. No matter how risky starting a business seems, for entrepreneurs, it is the route to the pursuit of happiness.However, while some started their companies to be independent, many may have lost that freedom along the way. If you allowed yourself to become subject to the petty demands of your business, it is time to come up with your own Declaration of Independence.

Here are some things to include:

• Independence from overly powerful customers

If you get most of your income from one or two major customers, they control your future, not you. They can dictate the amount of your income, the security of your business, indeed, the quality of your life. You don’t want to lose these customers, but make it a priority to expand your base.

• Independence from overly powerful channels

Successful entrepreneurs start their businesses by concentrating on one channel to reach their potential customers. They may target one specific industry or sell exclusively through one distributor. However, as your business grows, it is vital to diversify, so that if something unexpected happens, you can still survive.

• Independence from overly powerful vendors

Likewise, if you depend on only one or two sources for your critical supplies, then you’re at their mercy. Find other sources, and give them at least some of your business. Even if you’ve been using one source for years, ask from time to time for bids from other vendors. Stay flexible.

• Independence from overly dependent employees

If your employees come to you for every little decision, it’s time to give them their independence and free yourself at the same time. Create a working environment that gives them responsibility and authority, making certain that employees are also given the training and support to handle such authority.

• Independence from continual insecurity

Being in business is never completely secure, but once past the start-up years, you should be able to free yourself from constant worry. Build a base of continuing customers or product lines. Set aside a cash reserve. Diversify your personal assets so you have financial resources in addition to your business.

How to stop wasting time in meetings

While many can agree that the majority of business meetings are a waste of time, in some companies, meetings are inevitable.

But even though people working in these organisations cannot simply ‘quit’ having meetings, there are ways they can reduce the time-wasting drain that converts a short 15-minute meeting, into an hour of wasted productivity. Here are fives ways to do this:

Schedule shorter meetings
One of the simplest ways to have shorter meetings is to set a shorter time by outlining the strict start and finish time of a meeting. Try changing the settings in your work calendar so that you can edit the default meeting times to be shorter.

Have a clear agenda
Quite often, meetings lack agendas and those in attendance are left guessing what ‘Mr Smith presentation’ specifically entails. Clearing up this confusion at the meeting is also time-consuming. Good agendas use complete sentences that describe not only who is presenting, but also the precise topic they will present.

Start and finish on time
Don’t punish the prompt by waiting for someone who is late for the meeting. A simple trick to make people be on time for meetings is to set the starting time at an irregular time e.g. 9.07 am instead of 9.00 am, as most people arrive at the same time they would for the 9.00 am meeting, and the usual tardy staff arrive on time.

Circulate meeting material before the meeting
Provide material in advance for everyone to read so you can have a productive discussion and staff inputs on a topic.

Stick to the agenda
Don’t let others hijack the meeting. When someone questions an issue that is not on the meeting agenda, politely ask the person if they would like to organise their own meeting for the new topic. This informs people that you mean to accomplish the things for which you called the meeting in the first place.

Creating an e-commerce returns policy

A comprehensive returns policy is imperative for every e-commerce business. It is not only good practice, but it provides customers with confidence and demonstrates your business’ commitment to customer service.

A solid returns policy will ensure the returns process is professional, reduce the time and money spent on returns and keep your customers satisfied.

Here are five tips to consider when designing your e-commerce returns policy:

• Avoid legal jargon

Your returns policy needs to be easy simple and easy to understand. It is best to avoid legal jargon and complex terms. Instead use plain english and terms that everyone can understand.

• Ensure accurate product descriptions/images

To avoid customer disappointment, it is critical that your site displays accurate product descriptions and photography. Use 360-degree view of the items you sell alongside informative descriptions of products/services.

• Keep the policy front and centre

The returns policy should be posted on everything including your website, receipts, emails and even packaging so customers have every opportunity to review the policy.

• Highlight timeframe for returns

State the timeframe in which customers must return the product, i.e. 30, 60 or 90 days from purchase. For goods that are damaged or malfunctioning, there may be a shorter time frame.

• Exchange, credit, cash?

The policy must state the customer’s options to receive a store credit, exchange or a cash return for items. Businesses have flexibility in these preferences, for example, a full refund does not have to be provided. However, every effort should be taken to replace an item or provide a refund without incurring any costs for the customer.

Creating an anti-bullying workplace culture

Quite often, being too slow to name bullying behaviours that pose health and safety risks in the workplace can cost businesses millions of dollars each year through lost productivity.

Workplace bullying is repeated unreasonable behaviour directed towards a staff member or a group of workers that puts their health and safety at risk. Instances of workplace bullying include deliberately intending to cause physical and psychological distress and includes behaviour that intimidates, offends, degrades or humiliates a victim.

Here is a simple process businesses can implement to build an anti-bullying culture at work:

• Always keep an eye out for bullying

Bullying can be fairly easy to recognise. Forms of bullying include repeated harassment, exclusion and setting unreasonable expectations that a person is certain to fail. Recognise when staff are unhappy, quiet or unengaged with their work and whether there is a positive or toxic atmosphere in a workspace.

• Recognise the patterns of bullying

There is no mistaking bullying in action; the way people interact at work is a dead giveaway as to whether bullying is taking place. Examples of bullying patterns include one or several staff members converging on one or a minority of other staff members, snide comments slipped into conversations around the water cooler and the body language workers have to one another.

• Speak up when you see bullying

Bystanders of bullies are often reluctant to become involved when a bully is having a go at someone, but staying silent can be considered by many as simply accepting the practice as normal.