When I've heard most businesses that actually complained about one or more services being too expensive, they were really blowing off steam. All intangibles feel like they are too expensive. The only way that I've found to get around that sort of complaint occurring in my business is to make sure that the customer signs off on each tangible step along the way. On small jobs, I get them involved, so that they would be complaining about their own work (or it would seem so).
My view would be the biggest waste of money is on digital marketing that isn't connected to the sales and marketing plan. Whether it is a website, a blog, social media, etc, etc. I'm astounded at how many businesses waste money doing things because they think they have to and yet they are not tied to the strategy.
The biggest grips we ever receive are the costs of litigation. While many cases can resolve favorably through litigation, some of the best Mediators have now left ADR and formed their own company and their fees are even more. Going to trial is even more expensive as you have to deposit daily jury fees.
Yes all the time.. How this comes up is in the evaluation of Profit. Close to end of year, we do a profit analysis.. Many times finding endevors such as business coaches, business services Cost higher year over year.. And higher than the percentage allowed in benchmarking numbers. In this case many business are VERY concerned about the actual profit number. Saying after all that is the "POiNT" Of being in business. On the other hand, some High net worth people who have vast sums of Reserve money (ie. Millions $ in savings). Then they are more interested in serving thier personal needs. Emotions /values run higher than the Profit need. Their attitude, I will spend what ever I want on what ever service as long as I am happy . These same people even will Pay persons
60 k to 80 k annually just to have thier name on the roster, (without every working a single hour in or for the Business). Again these same people on a 2 million $ revenue company spend over 249,000 on various coaches - Life coach, business coach, systems coach, Marketing coach, Staffing hiring coach. And in the result was an actual decline in Gross sales, and decline in annual profit by over 270,000.00
Very few contractors/ service providers are willing to engage in reciprocal agreements. Such Agreement Example: a business coach.. would be a rate , like a royalty rate on the quantitative $ improvement (ie. net $ value increase in Sales) Like 1.5 % of net increase. For example our real estate agent.. we don't pay a fee first , and hope there is a Sale result. No Rather 100 people look at the house. and # 99 buys the house.. then the Realtors' Commission is due ! Result=Agreed payment. No result no Payment.
Marketing. Since I kind of do marketing I listen to my clients and direct them in different directions.
Business from Buena Vista, CO
Answered on Feb 9th, 2018
Ditto to Brian Crew's post. Thanks Brian. Marketing is one of those misunderstood things. Businesses will throw money into marketing without having a clear strategy, or understanding of their client profile. They also do not market consistently. The outcome, POOR results. They think marketing is expensive and a waste of time and money but feel they SHOULD be doing it because everyone else does. It becomes a big concern that they don't know how to solve.
The SOLUTION: a clear marketing/sales plan, even a very simple one with focused calls to actions and clarity of desired results can turn overspending and its related concern into a positive process that gets results.
Answers (1-7)
When I've heard most businesses that actually complained about one or more services being too expensive, they were really blowing off steam. All intangibles feel like they are too expensive. The only way that I've found to get around that sort of complaint occurring in my business is to make sure that the customer signs off on each tangible step along the way. On small jobs, I get them involved, so that they would be complaining about their own work (or it would seem so).
My view would be the biggest waste of money is on digital marketing that isn't connected to the sales and marketing plan. Whether it is a website, a blog, social media, etc, etc. I'm astounded at how many businesses waste money doing things because they think they have to and yet they are not tied to the strategy.
The biggest grips we ever receive are the costs of litigation. While many cases can resolve favorably through litigation, some of the best Mediators have now left ADR and formed their own company and their fees are even more. Going to trial is even more expensive as you have to deposit daily jury fees.
Stephen
Yes all the time.. How this comes up is in the evaluation of Profit. Close to end of year, we do a profit analysis.. Many times finding endevors such as business coaches, business services Cost higher year over year.. And higher than the percentage allowed in benchmarking numbers. In this case many business are VERY concerned about the actual profit number. Saying after all that is the "POiNT" Of being in business. On the other hand, some High net worth people who have vast sums of Reserve money (ie. Millions $ in savings). Then they are more interested in serving thier personal needs. Emotions /values run higher than the Profit need. Their attitude, I will spend what ever I want on what ever service as long as I am happy . These same people even will Pay persons
60 k to 80 k annually just to have thier name on the roster, (without every working a single hour in or for the Business). Again these same people on a 2 million $ revenue company spend over 249,000 on various coaches - Life coach, business coach, systems coach, Marketing coach, Staffing hiring coach. And in the result was an actual decline in Gross sales, and decline in annual profit by over 270,000.00
Very few contractors/ service providers are willing to engage in reciprocal agreements. Such Agreement Example: a business coach.. would be a rate , like a royalty rate on the quantitative $ improvement (ie. net $ value increase in Sales) Like 1.5 % of net increase. For example our real estate agent.. we don't pay a fee first , and hope there is a Sale result. No Rather 100 people look at the house. and # 99 buys the house.. then the Realtors' Commission is due ! Result=Agreed payment. No result no Payment.
Marketing. Since I kind of do marketing I listen to my clients and direct them in different directions.
Ditto to Brian Crew's post. Thanks Brian. Marketing is one of those misunderstood things. Businesses will throw money into marketing without having a clear strategy, or understanding of their client profile. They also do not market consistently. The outcome, POOR results. They think marketing is expensive and a waste of time and money but feel they SHOULD be doing it because everyone else does. It becomes a big concern that they don't know how to solve.
The SOLUTION: a clear marketing/sales plan, even a very simple one with focused calls to actions and clarity of desired results can turn overspending and its related concern into a positive process that gets results.
Truck charges or trip charges whatever you call them and a broad line item we call "consumeables".