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What You Need to Know About Penetration Pricing

Posted on March 6, 2021 by

Penetration pricing refers to a rigorous pricing strategy used by businesses such as tow truck Tysons va or any other business that wants to enter the marketplace, where it offers products and services at an extremely low entry price. The goal of penetration pricing is to disrupt existing businesses by luring customers away from what they are used to, with the promise of a lower price. This strategy requires companies to slash prices to almost below market value and is usually developed by new businesses in a high-growth phase that is prepared to absorb initial losses. The losses are viewed as a necessary sacrifice to gain market share and entice customers away from competitors.

Penetration Pricing Strategy

A penetration pricing strategy might be effective if a business is new or is trying a different marketplace. The goal is to lure customers away from established competitors, build solid brand loyalty and generate demand for what is on offer. If a business is lucky, it might even push competitors out of business. Penetration strategy offers many advantages. New customers will like doing business with you. This is the case because consumers love good deals, and companies offering penetration pricing are often adored and flocked because of their discounts.

There is also another advantage of long-term gains. This is where the economies of scale come into action. Employing penetration pricing will net high volumes of sales that may offset the lower price tag. Additionally, there is the benefit of market disruption. Offering products and services at low prices gives a new business opportunity to disrupt the market and establish itself as the leader. Customers will begin to wonder why they have been paying so high for the same products and services and give you the benefit of becoming their de factor place to do business.

Penetration pricing also comes with its fair share of cons. In the long run, you will need to raise your prices to stay in business, and doing so might lead to customer dissatisfaction and churn. Additionally, it may lead to a loss of brand value. When you price and market yourself like a discount brand, you will earn a lot of business. But people will start to think of you as a discount brand and this may cause pushbacks the moment you start to price your products higher.

The gamble of implementing a penetration pricing strategy is what your competitors might retaliate. A pricing war will lead to decreased profitability for the market as a whole and this will ensure no one benefits, apart from the customer. You also suffer the danger of inability to raise prices. There is also the chance that when you try to raise prices on your customers, they will not accept the change and may decide to do business elsewhere.

There is a couple of brands that have established themselves but were started on penetration pricing strategy. Notable of them include Netflix, Gillet as well as a couple of internet and cable providers.

Awards You Should Give Out to Fire Up Your Sales Team

Posted on January 15, 2021 by

If you have hard-working employees like tow truck guys always do, one of the best ways to ensure they are fired up is to create schemes for rewarding them. Your sales teams are very important to you and will need to be motivated and fired up from time to time. When looking for ways to ensure your sales reps are motivated, here are some of the best ways to go about it;

Cash bonuses

Monetary incentives are probably one of the simplest and most straightforward awards you can give to your sales reps. Responding well to cash bonuses is an almost universal element that is constant among different types of reps. Successful sales efforts will be heavily vested on awarding your reps with awarding them monetary benefits.

New Gadgets

Most consumers will be lovers of new gadgets. This is one of the reasons people camp outside Apple stores when there is a new device being released to the market. Many people find a new tech to be quite exciting and sales reps are no exception. So make it a habit to reward your sales reps with new gadgets as much as you can.

Professional development opportunities

This is one win-win for both sales organizations as well as reps. Make reps will be looking for opportunities to bolster and upgrade their sales skills and equally set themselves high up for smoother professional development. If you can offer exemplary sales people’s incentives such as tickets to places such as sales seminars and educational places, it can work wonders for their motivation.

Personal Development Incentives

Personal development is another powerful motivator when it comes to rewarding your sales reps. I think there is no one who doesn’t want to achieve the best version of themselves. There are wonderful personal development incentives such as gym memberships, cooking classes, learning a second language among others, that can all work wonders.

Vacations

A company covered vacation is one of the most important and traditional awards you can set up for exceptional salespersons. People will always love to take some time off work for themselves and their families. If they can enjoy all the benefits that come with vacationing with expenses paid by the company they work in, it can do wonders in motivating them.

Entertainment Tickets

You can boost the morale of your salespeople with some fine dining. People will always love to spend time together on memorable events and on things that entertain them. You need to be willing to take your most exceptional reps out to have quality time together and enjoy themselves.

People will always have different tastes and preferences. For any group you are managing, it is important you learn your members to develop a better understanding of things that excite them and come up with a plan on how to compensate them and boost their morale with those things they most love and treasure. That way, you will be creating memorable experiences.

How to Get the Most out of Your Ecommerce Marketing Strategy

Posted on October 20, 2020 by

Your eCommerce marketing plan is essentially the cumulative total of all strategies and tactics you apply to promote your products and services online. Though it is a different model as compared to what the likes of https://towtruckfairfax.com/ do, the bottom line is that eCommerce is a very lucrative business for different industries across the globe.

If you are running an eCommerce store, here are some of the tricks and tactics you can put in place to get the best of what you want to sell.

Blogging

Maintaining a blog is one of the best ways to attract potential customers to your site organically. You need to create quality content that is relevant to your industry, as doing so projects a sense of legitimacy and trustworthiness to your prospects. Additionally, you can give strangers incentives to visit your site through your content, on materials that are specific to your products and services. You can generate a lot of interest that can in turn lead to your prospects taking some actions.

Contribute to guest posts and other websites

Guest posts have the potential of expanding your online visibility. Additionally, it can help you in better establishing you as an authority in your industry. When you establish your authority in search engines, you become more reliable and your rankings increase. You can establish your authority on search engines with the use of relevant keywords on the products and services your customers are searching for.

Use referral marketing programs

Referral marketing combines two of the most underlying assets to any eCommerce marketing strategy – These are the word of mouth and incentives. With a solid eCommerce referral program, you will allow your customers to communicate your message to prospects who will trust their judgment. Research has shown word of mouth is directly responsible for about 20 percent of all purchases and has as much as 90 percent influence. A significant part of your eCommerce marketing strategy should include referrals.

Make use of social media

A well maintained social media presence will be an invaluable component of any successful eCommerce marketing strategy. Marketing products and services over social media can be very important for companies as products get advertised to different people all over the internet. Very few consumers are willing to buy products or services based solely on text. The success of your social media will lie in the efforts you put into the images you use to capture attention and generate traffic.

Drive user-generated content

Driving user-generated content is one of the best practices in finding and fostering ways for your customers to promote their business. It can be an excellent way in facilitating word of mouth for your company while driving traffic to your eCommerce site and building an authentic following of interested customers. One of the most effective ways of encouraging user-generated content is by offering prizes to your customers and promoting your products in some form.

In whatever you do, read through the interests of your customers and come up with something creative to their liking.

Simple Rules for Writing a Solid Business Plan

Posted on August 27, 2020 by

Now that you have decided to start your business, what is the next thing you should do? You have gotten feedback on your idea and everything has been positive. You are feeling ready to start your new journey of entrepreneurship. The next thing you should do is to come up with a business plan. A business plan is like a map that guides a business on where to go. It is coupled with meticulous planning and strategy, to ensure everything goes right. Coming up with a business plan for
https://raleightowtruck.com/ involved doing a lot of research to get everything right.

Depending on your goals and nature of business you want to get yourself to, a solid business will be very important in helping you secure the funding you need and bring in the partners you should have to move your business to the next level. Here are sure tips you should follow to come up with an awesome business plan.

Conduct Market Research

Before you can begin the process of convincing people about your business, you need to have data to back up everything. Stats show a large number of companies bite the dust within the first three years of incorporation, and this happens especially if there was poor market research before incorporation. You should have a careful scope of the market you are planning to enter and navigate the obstacles and challenges that might come along the way. For the data, you collect on your market research, analyze it, and come up with suitable conclusions.

Identify key readers of your business plan

There are eight different types of audiences your business plan can target. This will all depend on the group you want to attract so focus on highlighting those aspects of your idea that would be relevant to a certain group. Suppliers may be most interested in your financial focus and solvency, while prospective business partners may be interested in how you distribute ownership of the company. Regardless of the audience you choose to focus on, include key details that would also answer key questions from any group.

Learn how to summarize your ideas

You need to learn to get to the point as quickly as possible. Learn to summarize ideas for yourself and also make it easy for others to get to know your ideas without being subjected to lengthy reads. Being able to have summaries also shows you have a solid grasp of your plan and you are thinking critically of the steps that need to be followed to reach your goals.

Follow a standardized business template

You need to ensure all essential elements of a business plan have all been included. The essential elements include a business description, sales strategy, financials, market analysis, among others. Your audience will expect to find certain key details included in your business plan, according to the industry you are targeting. To avoid sounding naive and inexperienced, ensure you use the terms and language commonly associated with the industry you want to venture in.