For Interior Designers, Decorators & Real Estate Stagers

Transcription

1 For Interior Designers, Decorators & Real Estate Stagers

2 There is a right price when you are absolutely clear about what you want to accomplish.

3 The Four C s Cost Customers Competition Context

4 First things first Ceiling Floor Price 1 0

5 COST Know your numbers Metrics: P&L Statements Balance Sheet Cash Flow Fixed Cost Rent, Operations, etc. Variable Labor, Advertising, etc.

6 What works for you? Be realistic. Create a plan that fits your goals, desires and targets. Target Salary $50, Variable $10, Fixed Expenses $10, Net Profits $4, Total Target Revenue $74, Hourly rate = $ Annual Hours to Bill = Monthly Hours to Bill = Weekly Hours to Bill = 12.33

7 CREATE A PLANNED MODEL FOR YOUR ECONOMIC SUCCESS 1 Occupied staging consultation = 2 hours Drive time to & from = 1 hour = 3 hours total 2-3 per day = per week Is 5 days a week staging realistic? Marketing, bookkeeping, return phone calls, s. Realistic 3 days per week, billing 12 hours. 12 billable $ X

8 CUSTOMERS A marketing plan is key to your success in identifying your customers & clients! Use your marketing plan to : Identify the wrong customer. Define & find the right customers. Educate the right customer. Who are your customers? Where do I find them? Who aren t your customers? How will you know when you ve found a person who isn t your customer?

9 "The message of The Discipline of Market Leaders is that no company can succeed today by trying to be all things to all people. It must instead find the unique value that it alone can deliver to a chosen market. Why and how this is done are the two key questions the book addresses."

10 COMPETITION Define your niche. Mission Vision Values Company Culture Product Experience Who is your competition? What are they doing right? What could we do better? How is our value proposition unique? S.W.O.T. Analysis Strengths Weaknesses Opportunities Threats

11 CONTEXT Are the market conditions favorable for your products/ services? Is your product/service offered elsewhere?

12 Use a high price where there is a uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Such high prices are charged for luxuries such as Cunard Cruises, Savoy Hotel rooms, and Concorde flights.

13 The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. This approach was used by France Telecom and Sky TV.

14 This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Supermarkets often have economy brands for soups, spaghetti, etc.

15 Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply.

16 Psychological pricing Product line pricing Pricing variations Optional productpricing Captive product pricing Product-bundle pricing Promotional pricing Geographical pricing Value pricing

17 Cost Plus Target Return Pricing Value Based Pricing Psychological Pricing

18 If you raise your prices, what are the consequences? Will you lose a few customers? All of them? Will you attract a different clientele? Remember, if you give something away for free or for an extremely low price, it is perceived as valueless.

19 Tools: - A professionally designed website -Free trials or samples - Extended warranty option - Free after-sales service -Your credentials, length of time in business, list of important clients - Guarantees of satisfaction "100% satisfaction guarantee" - User-friendly privacy, security and refund policies - Testimonials, endorsements, reviews - Easy access with contact options e.g. toll free number, chat live.

20 Revise the discount structure Change the minimum order size Charge for delivery and special services Invoice for repairs Charge for engineering, installation Charge for overtime on rushed orders Collect interest on overdue accounts

21 Produce less of the lower margin models in the line Write penalty clauses into contracts Change the physical characteristics of the product

22 Operating Income (income after all normal cost of operations) Sales

23 MULTIPLY YOUR INVENTORY TURNOVER BY YOUR GROSS MARGIN PERCENTAGE. IF THE RESULT IS 100% OR MORE, YOUR AVERAGE INVENTORY IS SUFFICIENT. Cost of Goods Sold Average Value of Inventory

24 Net Sales Cost of Goods Sold Total Revenue

25 Earnings After Taxes Total Revenues