January 7, 2009

Making Money When Times Get Tough... Getting Past Pricing
Obstacles... Start Small to Achieve Big Results... How to
Respond to Customer Complaints... and More.

Turn on the nightly news or flip open your morning paper and you're hit in the face with a lot of negative talk. Gas prices are up, consumer spending is down, and that's just the tip of the iceberg.

It's certainly no secret that times are tough, but starting to panic and making rash decisions is certainly not going to help.

What will help is a long-term plan for making and managing your money and an understanding of what could go wrong. Like the old saying goes, "Plan for the best, prepare for the worst."

If you're making money by working for someone else, then now may be the time for you to start pitching your ideas. Employers are looking for new ways to keep their customers loyal without launching million-dollar ad campaigns, so if you've been sitting on that idea, it's time to start working out the details.

Now, if you're making money by running your own business, it's time to consider whom your customers are and how much they are being affected by recent changes.

Are your customers in hot water with their mortgage payments? Are your customers fretting about prices at the gas pumps? Or are your customers in a position where the effects of recent changes are little to none?

Consider the product you are selling and really uncover every benefit you can. Look for ways that your product or service can help ease the stress of your customers.

Now is also the time to start expanding your customer base and looking at exporting your product elsewhere. With the value of the dollar dropping at home, foreign customers are looking to North America for cheaper options than were available before.

For every niche market, there is another similar one that your product or service could appeal to. Rather than tightening your belt and focusing on the day-to-day, it may be time to look forward and set your sights on even bigger targets.

If you're starting up a business, then pricing your product is something that you will need to think long and hard about. You have to consider what the items you are selling are worth and how much of a profit you want to make on each one.

Most importantly, you have to consider your customers and what they are willing to pay for your items. Determining a price is certainly based a large part on your costs, both variable and fixed, as you don't want to lose money on the sale. But you also have to think like a consumer.

Have you ever wondered why you see items priced at $49.99 instead of just being rounded up to $50.00? Now, of course, $49.99 is just really $50.00, so why the penny less? Well, there is a certain psychology in play when it comes to pricing an item. There are these little boundaries that, if they are breached, they can put an item into a completely new price range that may be seen as a hurdle to a consumer.

An item that is priced at $49.99 is still under $50.00. There is a feeling that you're saving money -- even if it's just a cent. A penny to the retailer isn't really much if you can get the customer to think that they are saving and not paying $50.00. Something around the $49.00 range is a lot better than $50.00, for example.

The same thought process could be applied to giving away a free gift with purchase. Even though this free gift could essentially be worthless, the concept of getting something for nothing is enticing to a consumer.

You could give away something that cost you next to nothing to obtain, but it could result in someone buying more than they normally would. What about "buy two, get one free" sales? If you want to boost your sales during the weekend, then that third item really doesn't amount to much, because you'll have sold twice as much to make up for it.

The point is that you have to appeal to the consumer's need to get a deal. Or at least the concept of getting a deal, whether it is actually one or not. It's not that you're trying to fool the consumer; it's just that there are certain mental obstacles every shopper has that you have to get past.

When you're pricing your items, you have to first make sure that you're covering your cost of the item. You have to think about your overall costs to run the business and how much money you can make on the item. But you have to consider how the customer is going to react to your pricing as well.

Ask yourself the following questions when you are formulating your prices: What are my customers willing to pay? How high can I go before I start losing my loyal customers? What discounts and sales will appeal the most to them?

Put yourself in the shoes of the consumer. Think about what price appeals to you the most and what turns you off a product. Set your prices according to what the competition is charging as well. This will help you determine the optimum price you can get for your products.

Yesterday, I wrote about moving forward on your New Year's resolution with a positive attitude. I mentioned how important it was to have a "can do" attitude to grow your finances and come up with a solid foundation for 2010 and beyond. There are, of course, certain resolutions/tasks that can be quite difficult to embrace and maintain a positive attitude about. One such example is debt.

As you may know, debt can make it feel nearly impossible to live your life as you'd like. It can serve as a constant rain cloud over your head, making it difficult to see the light. There are, however, a number of ways that you can get yourself out of debt. Make 2010 the year you put in the necessary work to build a debt-free future of financial freedom and independence.

One of the keys to getting out of debt is thinking big and starting small. Start by trying to save up $500. Why? Because many employed people are living paycheck to paycheck. If the money stops coming in or you need an emergency fund to pay for an unexpected expense, it's good to have some cash tucked away -- you don't want to rely on credit. Doing this also helps you to get in the habit of saving cash.

Of course, although it's important to save cash, your main priority is likely paying off debt. In order to do that, come up with a payment plan that works for you. It's best to talk to a financial advisor to come up with a plan. Once the plan is devised, it's on you to keep up with it to ensure its success. Keep your future in mind, and realize that whatever hard times you're currently experiencing can be improved if you're willing to take the essential steps.

Next, don't incur more debt. This is specifically targeted towards people who have an income, but are living paycheck to paycheck. This is where you have to look at your financial picture and take stock of what you can and can't afford. Don't go out and buy new things if you can't afford them.

You may be forced to make some difficult decisions, like going without some things you'd like or are used to, but it will all help improve your debt situation. Continue to put money towards your debt to watch it diminish.

By making consistent payments towards your debt, you can pull yourself out and improve your credit score. Make 2010 the year you pay-off or make a significant dent in your debt! Remember, it's never too late to start, and you can do it!

** How to Respond to Customer Complaints
By James Burt, Online Marketing Expert

The question, "Is the customer always right?" is something I've thought about time and again, right from my early working days 'til now. I've been on both sides of the counter, as the server and as the client. On one hand, I hate it when I get bad service, but I also have had to deal with customers who were very difficult. It's a tough debate.

But, in any business, your clients are really your bread and butter. While they might not always be "right," they are the ones who are paying you to dish out the info you have. It's your job to work hard and deliver the best info you can in order to draw your own income. It's that simple.

As with any business, you are going to have the occasional issue with clients. Don't worry -- it's something every entrepreneur has to deal with. People make mistakes and there is no way you can have things run perfectly all of the time. What is important is not so much that you dwell on the issue, but that you take charge of the situation. Getting angry or questioning either your integrity or someone else's does not solve the problem. Decision-making and assertive action do. People always admire those professionals who get right down to work when something goes amiss with their business or at their job. It could be at the bank or at McDonald's. It's a very good sign of the commitment of the worker to rectify the problem. The public appreciates the hard work and will reward that worker with continued patronage.

Info marketing is not really that different from other businesses when it comes to dealing with the public. If something goes wrong with your business, you just have to leap in to fix it. The good news is that, oftentimes, there are specific problems that come up that you can solve without any severe personal or professional blows. In doing some recent comparisons, I found a couple of common complaints that I can share with you in order to help you with similar issues you might encounter along the way:

--- Tardiness and not delivering products on time: If you are an e-Wealth Daily subscriber, you know how we send out our newsletter daily. We always try to get it to you as promptly as possible. Sometimes this doesn't go according to plan. The Internet server is slow or someone forgets to do something they should have -- yours truly is guilty of this. But it does happen and could happen to you, whether it's trying to get your info e- mails or delivered products on time. When this happens, it's often good jump ahead a bit. Contact your clients either via e- mail or phone and let them know of the problem beforehand. That way they know what is going on and that you are dealing with it. Thank them for their patience and rectify the problem as quickly as possible. As well, do your darnedest to keep it from becoming a recurring issue. You can be forgiven in info marketing, but not repeatedly.

--- Getting "busted" by giving incorrect info: This has happened to info marketers often. You give out info, but your sources are a bit old or something has come along to replace what you knew to be absolute truth on the subject. One or more of your clients get hip to something before you do and call you on the info you have given them. Again, don't worry, but be sure to do something. Thank them for their tip, offer them something special in exchange such as a discount on a product or a special gift, and, above all, learn from this. Do what you can to improve your info sources so that you are always on top of your info subject.

--- Poor product quality complaints: Some people are easily satisfied, others not so much. You might be on a roll with what you are doing, but a certain client might not like what you are doing. Or, worse yet, you screw up and deliver a product that is sub par from what you usually send. If this happens, contact the customer as quickly as possible. Find out what they did not like. Try to see if you can solve the problem right there by sending them an improved version of the product they ordered from you. As well, take notes on what the client does not like so you can improve all of your existing and upcoming info products. Whatever you do, do not leave this problem alone. Deal with it quickly and professionally. Ignoring it will result in loss of clients and, ultimately, income for you.

--- Competition inquiries: My dad loved getting tough with banks on mortgage rates. If one was no good, he found one that could meet his demands. I would hate for you to meet someone as tough as my dad, but you probably will. A client might say they can get better info marketing service some place else. If this happens, see if you can be competitive and meet the demands of that client AND competitor. Remember: you want to keep as many clients as possible, so try to meet their demands. Use good judgment and reasoning though -- if that one client's demands are too steep, it might be best to stand your ground and let them decide if they want to continue patronizing your business.

The late, great film director Billy Wilder was once quoted as saying: "I've never met a dumb audience...individually they are dolts, but collectively they are a genius." It's a crude statement, but I think a handy one to learn. Your clients are your audience and you have to work for them. Always strive for the best overall client performance. Don't worry too much about client complaints, but be ready to deal with them whenever they come your way. Your professionalism and dedication will help you keep getting the info marketing success you crave.