Month: September 2012

Categories
Planning & Management

Are You Charging Enough? How to Calculate Your Prices

Figuring out how much to charge is one of the biggest challenges small businesses and self-employed professionals must face. Everyone wants to be paid well for their work, but there’s always that nagging fear of losing opportunities and loyal clients if you raise your prices too high. And if your prices are too low, it becomes hard to sustain your business (not to mention pay your own bills).

Choosing a pricing structure is like walking a tightrope, and it can be fear-inducing. I’ve found that many of my clients respond to this fear by playing it too safe with their prices. Rather than charging what they think they deserve, they give in to fear and charge rates they know their clients won’t object to. But there are better, more balanced ways to set prices.

Charging For Value

Start by realizing that it’s not the end of the world if a few people think your prices are too high. If people don’t want to pay the proper amount for the value you offer, let them go to someone cheaper. A good number of these people will soon be back after discovering that the cheaper option is not as good. And those who don’t come back obviously aren’t in your target market. That’s okay-some people are more concerned with price than value.

Next, think about how you’re marketing your business. If you deliver top-quality products or services and want to charge accordingly, does your marketing make this clear? If you are not interested in catering to clients looking for the lowest rates, think about how you can include this in your marketing strategy. It’s all about how you present your work. If you provide value that is worth paying for, make this clear from the very first connection you make with prospective clients.

Pricing Strategies

Deciding how much to charge comes down to a formula. For self-employed professionals, think about how much you need to earn, what it costs you to run your business (including marketing and administration). Don’t forget to account for how much time it takes, on average, for your daily task (you need to be paid for ALL the hours you work). For small businesses, a good approach is to calculate your monthly operating costs and balance this against your average sales. This should give you a clear picture of your ideal per-service or per-unit rate.

These strategies are actually pretty simple, and as long as you know the right questions to ask it doesn’t take much time to figure out how much you should be charging.

Don’t be afraid to charge what your worth. And most of all, remember that making a profit is no crime. You work hard, so charge based on the value you deliver.

Categories
Entrepreneurs

Charles E Phillips and Social Media

Infor Global Solutions is a leading software company that serves customers across the world in a variety of industries, including machinery, apparel and foot wear, finance, automotive, aerospace and pharmaceutical industries. They are the third largest provider of software applications and solutions and have over 12,000 employees in 40 countries. Infor Global Solutions employs thousands of developers, consultants, and support professionals that work with 70,000 customers worldwide. They bring in billions of dollars in revenue on a yearly basis from clients like Macy’s, Ford Motor Co., Hallmark, Mazda, and RadioShack.

Their customers also include 8 of the top 10 aerospace and pharmaceutical companies. Other target industries include chemicals, state and local governments, consumer packaged goods, retail and food processing.

Originally named Agilisys, Infor Global Solutions began doing business in 2002 in Pennsylvania. Infor’s goal was to build as large a global presence as possible. The company moved its headquarters to Georgia, where they acquired Infor Business Solutions. The name was then changed to Infor Global Solutions. Infor Global Solutions can claim more than 30 acquisitions of other software development companies.

Infor’s software products are used for managing inventories, shipments, and human capital across the supply chain. Some of the services that they provide are asset, human resources, and warehouse management. In addition to the latest software, they also provide technical support and train associates in 20 languages and have a business presence in 194 countries.

Charles E Phillips (CEO profile) joined the company in 2010 and has made noteworthy strides in utilizing social media to make even more connections to its clients and affiliates.

Phillips created an innovate approach to educating Infor Global Solutions’ employees on the positive and wide spread uses of social media. Because of his efforts, the company was recognized with the Open Leaderships Award in 2010 by the Altimeter Group, the leader and global authority on social media use for business applications. Infor Global was awarded for its efforts in educating employees on how to use social media to create open and clear interactions with internal and external business associates.

In the first few months of the program Infor’s program, social media usage dramatically increased across Twitter, LinkedIn and Yammer. Twitter alone saw an increase of over 300%. Current growth is a 10% per month for each platform.

Infor was highly commended by the Altimeter Group founder Charlene Li. “What really impressed us was [Infor’s] detailed implementation program, which included contests, parties, and incentives to engage people both at the grassroots level and also involve senior executives,” Li stated. Li was also impressed with Infor’s thorough implementation of social media education.

Phillips has made significant improvement at Infor and seen growth in revenue in the millions in part because of the company’s growing online and social media presence. His primary focus has been increasing the company’s global presence innovation and production. Other strategies he has implemented have led to increased efficiency and revenue. Infor Global Solutions headquarters has since moved from Georgia to New York.

Article contributed by Jenna Smith

Categories
Success Attitude

It’s Just Feedback – Part Two (or how to do this)

It is Just Feedback – Part 2

I recently did a blog post called It is Just Feedback.  This article received more comments than any article I wrote. I am not talking about blog comments but actual phone calls and email from people saying things like:

“I finally get it…”

“I connected the dots…”

“Thank you, I get it now…”

After the comments, I received the same questions over and over and I want to address it here. The question in all its various forms is this, “How do create the mindset that it is just feedback. How do I not take it personally?”

A very good question. I will provide an answer that some of you will not want to hear. Before I do, let me create an example we can use to provide some context.

“I love what I do but I am afraid to pick up the phone. When I finally talk with someone, I know I can help them but I am so afraid of rejection I get afraid just thinking of picking up the phone.”

Does that sound like you?

If we were together I would use a simple technique to reframe that experience because it does not matter where it came from or how long it has been with you. YOU CAN CHANGE. I use a simple swish technique on me. I see the fear, big and bright and I move the picture to a small black and white picture off in the distance. I then create a new picture of what I want to feel. I then replace the negative picture with the new picture by switching them. I create a picture of a client who is so happy with what they achieve in working with me and how good I feel knowing I was able to help them. I then switch the picture of rejection and replace it with the feeling of happiness, knowing I helped someone.

After doing this a few time, I am thinking about how I can help the next person I want to call and I successfully replaced the fear of rejection with feeling of satisfaction.

This is important, stop moving away from pain and start moving toward your desired outcome. Stop thinking of how people will reject you and start thinking about how you are moving toward your desired outcome. Are you helping them change their lives? Are you moving toward a financial goal? Focus on the outcome and not the rejection. Stop thinking about what you do not want.

This can be difficult because as human being, we tend to take the path of least resistance. It is easier to move away from pain then it is to move towards something we want. Why, because most of us are afraid to define what we want. It takes some work? It takes a bit of risk? It is always easier to take the path of least resistance.

BTW, it is very easy to determine what we want. Just write down what you don’t want and think of the opposite. It I do not want to be poor that means I want wealth. If I fear rejection that means I want acceptance.

Focus on what you want – not on what you do not want. Learn the skill necessary to move forward. If you find you pick the wrong goal, that’s ok. Think of what you learned and how much closer you are. Try again.

Categories
Branding

Protect Your Reputation Online

When you are a professional, nothing is more important than your reputation. Your reputation creates loyalty with your customers, and it is what helps you secure future deals for your company. It is essential to take proactive steps in managing the reputation of you and your company on the Internet:

Case Study of Yelp

Yelp is one example of a company that has benefitted in actively managing its reputation online. Yelp is an advertising company that provides online advertising for businesses. Ever since it was created, hundreds of consumers and business owners have filed complaints about the ineffectiveness of this website.

The website denies that these rumors have any truth to them. Merely denying the rumors would likely just inflame public opinion against this company. Realizing this, Yelp has very strategic ways of combatting negative rumors about the company.

Contacting Blog Writers and Media Professionals

One way in which Yelp has managed to overcome negative public opinion is by promptly contacting blog writers and media professionals. The employees at Yelp are very aware of the current lawsuits that the company faces. Instead of trying to stifle the truth, Yelp employees have actually been speaking openly about the lawsuits. In acknowledging the truth of the struggles that this company faces, public opinion has slowly gravitated in favor of Yelp. Consumers actually want to see this company succeed.

Tip: Business owners can contact blog writers directly to clarify any factual errors in a story or to disburse a message to the greater public in an interview.

Handling the Pressure

The key for companies facing negative criticism is to remain calm and handle the pressure. When a company is able to openly deal with the criticism in a constructive way, it actually benefits the company’s reputation. A company is able to repair its tarnished reputation and gain favor with consumers.

Tip: Business owners should relax when they face a disastrous situation, but they should also deal with it. It is essential for business owners to contact media professionals and devise a plan for dealing with the situation.

Other Case Studies: Goldman Sachs and BP Oil

BP Oil and Goldman Sachs are two other companies that are worth studying for the ways in which they have chosen to handle negative criticism. These companies have had markedly different approaches to dealing with disastrous situations.

BP Oil has arguably been the better business in handling negative criticism surrounding the oil spill, because it has created YouTube channels, Facebook groups and other social media groups to help people get involved in resolving the crisis. The company acknowledged its wrongdoing, and it has been working to improve conditions of the situation ever since this acknowledgement.

Goldman Sachs, on the other hand, has attempted to evade public criticism of its fraud charges by the SEC. Goldman Sachs has issued no apology to the public regarding its actions. According to Katie Paine of The Measurement Standard, Goldman Sachs failed to show any compassion for the victims who were affected by its fraudulent actions. Ever since the fraud charges were filed, thousands of negative websites have been created that are aimed at Goldman Sachs. The public perception of the company continues to grow worse every day.

When you want to protect your reputation, you can hire an online reputation management company to assist you in the process. In addition, it is important for your company to use common sense and simply apologize to the public. Using common sense and showing compassion for others will get you far in the long run.

Article contributed by Jenna Smith

Categories
Entrepreneurs

Youngest Entrepreneurs of 2012

Article Contributed by Kevin Schweizer

The business ideas of a few entrepreneurs have changed the culture of society since the beginning of time. For example, Mark Zuckerburg had a simple idea for a social media site called Facebook and now many facets of society and life can be connected to Facebook and its social platforms.

Entrepreneurs come in all shapes and sizes but some of the most groundbreaking entrepreneurs of 2012 are some of the youngest we’ve ever seen. Take a look at four entrepreneurs who have been in business since the ages of 10 and have built businesses in industries from art to eco-friendly ecommerce.

Maddie Bradshaw

10 year old Maddie Bradshaw saw her locker in 5th grade and decided she’d like to decorate it in a unique way. Her search for cool locker magnets came up short and M3 Girl Designs was born. Now at the age of 16, this stylish young girl has created SNAP CAPS, interchangeable bottle caps that are used in accessorizing necklaces, bracelets, hair bows and keepers.  Her company that began with $300 dollars now sells over 50,000 necklaces per month. Maddie has recently finished a book and continues to sell SNAP CAPS as she attends school.

Daniel Schlessinger

At the age of 12, Daniel was an Omaha resident who experienced dry skin in the Nebraskan winters. One day, on a whim, he decided to use lip balm as a way to protect his hands from dryness and cracking. It was through this whim that the idea for the company FixMySkin was born.  At the age of 14, Daniel approached chemists and after 50 formulas, found the correct formula for skincare. Now at the age of 18, his company sells LovelySkin and FixMySkin balms with over $60,000 in yearly revenue.

Jeff Owen Hanson

Jeff Owen Hanson has a genetic condition called Neurofibromatosis that results in visual impairment. It was while he was in the hospital for treatment for his condition that he discovered his love and talent for watercolor. At the age of 12, his artwork was abstract with bright colors and in his first year of painting, he sold over 5,000 watercolor note cards and rose over $15,000 for The Children’s Tumor Foundation. Jeff who is now 18 years old creates larger works of art through using acrylics and watercolors and donates proceeds to charities.

Jason Li

Used cell phones, tablets and other electronic devices have quickly become the fastest growing waste in the United States and to combat that waste, Jason created iRe Tron. In 2011, Jason received a $2,000 loan from his father to launch his breakthrough ecommerce business that provides an eco-friendly way to “throw away” old electronics. Jason’s online company buys back used electronics and restores them to be resold on the market or donated.  Jason, who is in high school at the age of 15, says he’d like to make his company a million dollar business by the time he is in college.

It is through these young entrepreneurs that the future of business and society will grow. Beginning businesses at such a young age has lead these breakthrough business owners to be the next generation’s set of role models and leaders.

About the Author

Kevin Schweizer is the Online Marketing Manager for Phone.com, an internet-based company specializing in home and business phone, virtual office and virtual number services. When Kevin isn’t writing, he can be found watching the NFL and learning about medieval castles.