• Secrets for Stress-Free Finance

Prices Send Signals to Customers: The Chiropractic Edition

December 11, 2018

Prices Send Signals to Customers: The Chiropractic Edition December 11, 2018 So what’s the first impression of the customer who desires chiropractic services and sees this signage? Is it the quality of the doctor or the staff? Their education or qualifications? Their method of care which incorporates the most up-to-date research? Their accessibility? The calm, reassuring demeanor of the doctor? Obviously not. It’s obviously price. This practice makes it clear:  it’s all about the price. To remove all doubt, price…

To Improve Cash Flow, Don’t Miss the Most Effective Remedy

December 7, 2018

To Improve Cash Flow, Don’t Miss the Most Effective Remedy December 7, 2018 Articles like this–“5 Tips for Boosting Low Cash Flow”—frustrate me. For most businesses with poor cash flow, they miss the most obvious solution: pricing. Here are the five suggestions mentioned in this article:  “Take Out a Fast Loan”  “Speed Up Receivables”  “Make Spending Cuts”  “Take Out a Line of Credit”  “Make an Investment” For the most part these suggestions may seem reasonable, but let’s look at each one…

Price, Context, and Payless Shoes

December 4, 2018

Price, Context, and Payless Shoes December 4, 2018   A new shoe boutique, Palessi, recently opened in Santa Monica in space formerly occupied by Armani. To celebrate the grand opening, Palessi threw a party for influencers. As they drank champagne and snapped selfies for Instagram postings, they were asked their opinions of the various shoes and boots and their willingness to pay. Using descriptions like “elegant” and “sophisticated,” this group lauded the materials, style, and craftsmanship of the store’s wares.…

Discounting the Christmas Ham

December 3, 2018

Discounting the Christmas Ham December 3, 2018 “Should we have a ham for Christmas this year?,” my wife asked this weekend, over three weeks in advance. “Sure, sounds good to me,” I replied. “Should we go ahead and order it?,” she asked. “Why should we? Remember last year when we used a coupon? Let’s just wait and see what we get. Something always comes along.” She didn’t have to think about my suggestion. “You’re right, let’s wait.” This is what…

Price Effectively or Die: Pricing for Startups

December 2, 2018

Price Effectively or Die: Pricing for Startups December 2, 2018 A big thank you to Lexie Newhouse for her write-up of my recent talk on pricing for startups at LaunchGSU at Georgia State University:  . . . Ray shared that “Your ability to diagnose, communicate, and price your value to clients determines everything.” His tips on price and its ability to change the bottom line of a business helped students gain a better understanding of what pricing structures best fit…

Do You Really Know Your Competition?

November 16, 2018

Do You Really Know Your Competition? November 17, 2018 The smartest business owners I know understand that their competition is not obvious. Here’s a few examples: For a small business bookkeeper, the competition is an Excel spreadsheet and a shoebox. For the owner of a sandwich franchise like Subway, the competition is a convenience store. John Herbert, a business attorney client of mine, told me his competition is the inertia of his clients—the reluctance to take the time and spend…

“We are in the Joy Business”: The Intangibles of Cake

November 9, 2018

“We are in the Joy Business”: The Intangibles of Cake November 9, 2018 On a recent edition of “North Fulton Business Radio” on Business RadioX I interviewed Gloria Mattei, who along with her husband Sergio owns Nothing Bundt Cakes in Alpharetta – Milton. I started the interview by asking Gloria to give a general introduction. Did she mention the way cakes are made, all the different flavors, decorative accessories, her beautiful store, or her location? As obviously essential as all…

Warren Buffett on the One Difference in a Great Business

November 6, 2018

Warren Buffett on the One Difference in a Great Business November 6, 2018 You’d think management is the most important investment consideration for Warren Buffett, the man commonly regarded as the greatest investor of our time. On the contrary, notes Buffett: “the extraordinary business does not require good management.” Think about this:  not only does an exemplary business not require exemplary management, Buffett says, it doesn’t even require good management. The most important factor in a great business, Buffett says,…

“Make Others Cool”: Microsoft, Empowering Customers, and Better Pricing

October 15, 2018

“Make Others Cool”: Microsoft, Empowering Customers, and Better Pricing October 15, 2018 When Satya Nadella became Microsoft’s CEO in 2014, the company was stagnating. Windows 8, a lynchpin of the company’s attempt to remain relevant in the smartphone and tablet revolution, had proved to be a major disappointment. The development community had had enough of the company’s arrogance. The company’s stock price had drifted sideways for years. Not long after Nadella’s predecessor, Steve Ballmer, announced his intention to retire, Bloomberg…

Peter Drucker, Women’s Shoes, and What Customers Really Buy

October 12, 2018

Peter Drucker, Women’s Shoes, and What Customers Really Buy October 12, 2018 It’s not a stretch, by any means, to say that management consultant Peter Drucker defined ground breaking management practices which American corporations and non-profits still operate by today. Management by objectives, “SMART” goal setting (Specific, Measurable, Attainable, Relevant and Timely), decentralization into smaller, independent teams, and the importance of knowledge workers are just a few of the concepts first promulgated by Drucker. In his book Management: Tasks, Responsibilities,…

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