Myth Busted #1 I need to cut prices.
I don’t’ care what the media says, companies and individuals for the most part are struggling.
Illinois has the 5th highest unemployment and it is not getting better.
Over a million VETS will return to the US looking for work. What maybe needed is some direction to help you take your business to new levels of financial success. For my readers they know that I work with every type of company from Fortune 100 to start ups. I have seen it all. So I thought why not share what I have learned in a short blog, once a week.
Myth Monday’s will share information, raise issues, destroy myths and offering insights from my experience. Whether business, travel, or health, I will share my perspective on MYTH busters.
“Don’t compromise yourself. You are all you’ve got.” Janis Joplin, Singer
MYTH #1 “I NEED TO CUT PRICES.”
Clients don’t pay more than your standard prices in good times so don’t discount fees when times are bad. Cut prices now and you have will a difficult time raising them later. Instead be flexible on delivery or payment terms. Personally I do not offer open accounts. I explain that carrying balances cost me money and therefore it costs my client money.
I suggest breaking a large project into pieces so that you can bill as the work progresses and paid for as the work progresses. In my case I charge prior to starting the work so that I have the cash to negotiate with my suppliers to obtain a cash discount. This benefits everyone. If my supplier wants or accepts credit cards I use them always. Why not delay the payment for at least 30 days and receive dividends in the forms of mileage or other credits?
“I have learned to keep going, even in bad times. I learned not to despair, even when my world was falling apart. I learned there are no free lunches. And I learned the value of hard work.”
Lee Iacocca, former CEO Chrysler Corp.
RULE 1: Whenever I grant a concession I make sure I get one in return.