There are many things that are hard to communicate in ads because they can’t really be measured – the reason why your customers should trust you is one of those things.
Being able to communicate brand trust through your marketing material is very important. After all, you often get one shot to make an impression on your prospective customer or client, and you shouldn’t depend on getting a second chance to prove your trustworthiness.
Put it this way: according to a recent survey, 56% of consumers feel more loyal to brands that “get them” – so it’s important!
How do you communicate something as intangible as trust in your brand’s marketing materials?
You’re ready to start selling your great new service or set of products. So, how much are you charging? If your answer to that question was a shrug, read on!
How to figure out what to charge as an entrepreneur
Finding a good price means finding a balance between pleasing customers and making money. It’s tricky! You may want to charge a high price to make more money, or charge a low price to tempt customers away from your competition.
Consider these things when figuring out what to charge for your small business’ products or services:
The costs that go into the development of this product or service – both fixed and variable. If you don’t at least cover these costs, you’ll lose money.
The prices of similar products or services that already exist in the market Try to stay within that range. How does your product compare to others in the industry? Are your customers willing to pay more for a new feature, or do higher prices meet with complaint?
The values associated with your product or service that are behind the scenes – things like reputation, durability and customer service.
The three methods of determining price
Cost-Based Pricing. This means setting your price high enough to cover the costs you generate when producing your product. Mark-ups can range from 10% to 60%.
Value-Based Pricing: Value-based pricing tells you what your customers are willing to pay, rather than just covering your production costs. What unique value does your business provide? Is your product exceptionally well-made? Is there prestige attached to your name or brand? Do you have unusually good warranties or customer service? Are you an expert in your field?
Competition-Based Pricing: Here, your base price follows what your competition’s charging. This depends on your industry, image and what you’re offering. With luxury items, it’s not unusual for prices to reach on the high side to seem more extravagant. But with convenient and common products or services, prices are often on par with or even lower than the competition. Choose your prices carefully with this method – prices way off the mark can see your customers flock to your competition.
Entrepreneurship is a great dream for many Canadians. And with the recent pandemic changing the world of work, many of us have been somewhat forced into starting a side business or freelancing to help make ends meet.
The reality of entrepreneurship is hard, and many Canadians aren’t ready for it – and that’s okay! You may be ready for it later on, after life circumstances change or small business training teaches you the necessary skills you don’t have yet.
How can you find out if you’re ready to be an entrepreneur?
Download GoForth’s free Self-Assessment for Entrepreneurs to see if now is a good time to start your small business journey. We can’t predict if you’ll be a success, but taking an honest look at your situation right now will help you figure out your odds. Take your time and do as much research and training as you can before you strike out on your own – it may make all the difference to your success.
2020 was a rollercoaster of a year for small business. If anything, it’s taught us just how important it is to look out for each other. At GoForth, we’ve been humbled by those who care for others, and honoured by innovative people who pivoted their focus to bring solutions and help to the public.
Whatever your life looks like right now, we thank you for sticking with us, and we applaud your efforts to keep going. It was difficult for everyone, but the entrepreneurship community in Canada is resilient and supportive, and we’re proud to be a part of it.
To that end, we wanted to share some of our favourite 2020 blog posts, that we hope will be helpful going into 2021:
It’s no secret that this holiday season will be a tougher one for many people than before. But small businesses have a unique opportunity to help their communities this year. Here are some ways small businesses can give back this holiday season, whatever your budget.
Support other businesses as often as possible, both personally and on behalf of your small business.
Donate, whether it’s monetarily or via the goods your business makes or service you perform.
Show your employees a little extra love, whether it’s more holiday time off or gift cards to use at local businesses in the new year.
Investigate charity events your business can sponsor or participate in.
Consider giving away a service or resource that you might normally charge for. As an example, your photography business may post a series of “Photography Lighting Hacks” videos on YouTube or Instagram. This could have a ripple effect – maybe another small business just needs great, well-lit product photos for their website but can’t afford to hire a professional.
Signal boost other businesses. Make a point of highlighting the other small businesses in your area or indirect competitors in your industry. Word of mouth is a powerful thing!
Give referrals to other service providers as often as possible.
Collaborate with other businesses to offer bundled services or products. This can help promote related businesses and perhaps introduce them to potential customers who weren’t familiar with them.
Show your gratitude. This one might sound overly simple, but sometimes just hearing that someone out there cares can go miles in sustaining an entrepreneur’s determination.
Do you have any other suggestions that we might have missed?