In the competitive landscape of business, the quality of your products and the efficiency of your organisation are not just operational details—they are pivotal factors that directly influence your profitability and market position. When quality falters or when disorganisation prevails, the consequences can be severe, affecting both the price you can command for your products or services and your overall gross profit margins. Imagine you’re at the helm of a business where quality control has slipped or where processes are haphazardly managed. What impact might this have? For starters, poor q ..read more

What is a High-Value Self-Managing Business? A high-value self-managing business is one that can operate independently, maintaining functionality and profitability without constant oversight from the owner. In essence, it’s a business that runs smoothly based on well-defined systems and processes, allowing the owner to step away without the risk of serious decline. This type of business structure contrasts sharply with the traditional owner-centric model, where the owner’s daily involvement is crucial for the business’s success. The importance of building a high-value self-managing business ..read more

“Are You Charging Enough? Discover Your True Worth with the Value Pyramid” Introduction. When it comes to determining the right price for your products or services, to know if you are charging enough, understanding how your customers perceive value is paramount. This concept, often encapsulated in the question “What To Pay,” drives every purchasing decision. It’s not just about the cost or the quality of the product; it’s about the perceived value that the product delivers to the customer. This perception is complex, influenced by a myriad of factors that go beyond the tangible and into the re ..read more

Introduction. When setting prices for your products or services, understanding the underlying psychology of decision-making can be as crucial as knowing your market or your production costs. This is where the groundbreaking work of Daniel Kahneman and Amos Tversky comes into play. Their research in behavioural economics, particularly around how people make decisions under uncertainty, offers valuable insights that can help you refine your pricing strategy. Kahneman and Tversky introduced several theories that challenge traditional economic assumptions that consumers always behave rationally. I ..read more

The Power of Context in Pricing: How Pricing Context Can Boost Your Profits. When it comes to pricing your products or services, context is everything. It’s one of the 5C’s of pricing for a reason. Understanding the context in which your pricing is perceived can dramatically influence what you can charge. Let’s dive into how you can use context to your advantage. In the competitive world of business, setting the right price for your products or services can be the difference between thriving and merely surviving. One of the most overlooked aspects of pricing strategy is context. Simply put, co ..read more

Why you need to conduct a pricing audit. In today’s dynamic market, setting the right price for your products or services is more critical than ever. It’s not just about covering costs and ensuring profitability; it’s about strategically positioning your business for success in a competitive landscape. To navigate this complex task, the 5C’s of pricing offers a robust framework that helps businesses evaluate and optimise their pricing strategy systematically. The 5C’s — Cost, Customers, Competitors, Channel, and Context — are essential components that together provide a comprehensive view of t ..read more

“Coke’s 73 years of Nickels: Lessons from Coca-Cola’s Sticky Pricing Problem” A case study. What is sticky pricing? In economics, the concept of “sticky pricing” refers to situations where the price of your product or service resists changes, even in the face of shifting market demand or production costs. This phenomenon is key to understanding how you, as a business owner, might react to economic fluctuations and manage your pricing strategies over extended periods. A quintessential example of sticky pricing is the historical pricing of Coca-Cola, which remarkably held fast at 5 cents for a 6 ..read more

Following on from part one. This is part two of our blog on the Top Business Planning Mistakes to Avoid. Lean business planning offers a streamlined and practical approach to setting up a business strategy that emphasises agility and clarity. Unlike traditional business plans that may delve into extensive detail and feature lengthy documents, lean business plans focus on the essentials—what truly matters to get the business running and adaptable to changes. The process involves succinctly outlining key elements such as the business’s identity, market strategies, and operational tactics, thus p ..read more

The Top Business Planning Mistakes to Avoid When Creating a Lean Business Plan. Lean business planning offers a streamlined and practical approach to setting up a business strategy that emphasises agility and clarity. Unlike traditional business plans that may delve into extensive detail and feature lengthy documents, lean business plans focus on the essentials—what truly matters to get the business running and adaptable to changes. The process involves succinctly outlining key elements such as the business’s identity, market strategies, and operational tactics, thus providing a clear roadmap ..read more

“You can’t outsource physical exercise, somebody else going to the gym for you won’t get you fit”. Imagine this: You’re at the head of a business that’s just begun to gain traction. The pressure to scale up and expand your operations is mounting by the day. In a bid to accelerate growth, you’re tempted to outsource key business activities – marketing, sales, product development – to external experts. The allure is undeniable: instant expertise, reduced overheads, and more time for you to focus on other strategic areas.  But, pause for a moment to consider: What if in your rush to grow, yo ..read more