How to Win at Business in 2010

During a conversation with the publisher at Entrepreneur Press in 2008, we talked about some of the shifts that were showing up in entrepreneurial and small businesses. We agreed on many things, one of the most important being:

We are in a new economy.

There are lots of “negative” words that people are fond of placing on what’s happening with regards to the financial situation as we enter 2010. Personally, I don’t buy into any of them. Of all the many words and phrases being thrown around, that one thing is clear:

We’re in a new economy.

As a matter of fact, I believe that…

We’re in The New Economy.

As in, this is a new age, and it will be defined by the newly emerging financial situation in your own neighborhood and around the world, which after the events of 2007 through 2009 is unalterably changed.

For many people,  this New Economy is synonymous with “tough times.” And for anyone who holds that perspective, then that’s what’s true – for them. They’ll have a tough time succeeding in business, because their mindset and beliefs will rule their decisions, actions and outcomes.

Which is GREAT news for people who are willing to be successful in business right now.

Because business is commerce – the exchange something of value that others are willing to pay (or trade for).

And right now, people and businesses are in pain, related to their inability to overcome their own perceptions and find creative ways to be successful in a new set of circumstances, when what used to work no longer does.

People and businesses need to learn how to overcome their “obstacles to success” and whatever “problems” they perceive. And they will pay you if you can help them to that, or do that for them.Help with the following, and you’ve got a significant foundation for success:

Making money
Making more money
Overcoming worry, fear and doubt
Fixing and enhancing familial, romantic, personal and business relationships
Making tasks easier
Creating more joy and enjoyment

Of course, there are more “problems” and more “obstacles” that – for people who know how to solve and overcome them – are the basis for business success. The few that I’ve listed above are just meant to jog your thinking and remind you that “difficult” times provide the perfect opportunity to for whomever helps people get through those tough times to prosper.

Things HAVE Changed

There have already been significant noticeable changes in The New Economy.

People and businesses are spending less. They’re being more discriminating about how they spend their money. They’re doing more comparison shopping, and while not always buying the lowest-price item, are making buying decisions that are more consciously associated with their perception of “value.”

In many cases, people are expecting to pay less for the exact same product or service that they would have paid more for just a few short years ago. This is especially true about information products and training programs delivered electronically via the Web, and other products and services for which the consumer knows that the cost of inventory and delivery is low and the profit margin to the provider is high.

This does NOT mean that you must lower the price on everything that you sell. In some cases, you can charge MORE for the products and services that meet people’s and businesses most pressing CURRENT needs and desires than those same products and services would have cost before this economic change.

Pricing is Related to Your CUSTOMERS’ Perceived Value

Remember that pricing that will most likely result in a sale is related to perceived value on the part of the consumer. That is, if the buyer believes, thinks, and feels that the value s/he’ll get by owning / using what you’re selling is equal to or greater than the money s/he’ll pay PLUS the time s/he’ll invest to get the benefits, then “the price is right.”

Price something too high in relationship to a prospect’s perceived value, and you’ll lose the sale for obvious reasons. By the same token, price something too low in relationship to a prospect’s perceived value, and you’ll lose the sale – because people don’t want to waste their money and time on what they perceive to be “inferior” products.

You need to set or adjust your pricing according to the new conditions of The New Economy. Of course, you’ve got to take into account the “cost of goods” (manufacturing, shipping, inventory/storage, etc.) so that you don’t end up losing money on every sale. And while you can’t afford to price everything you sell below your own costs, you may need to consider offering one or more items at or below your cost as “loss leaders,” if you have a clear understanding of how such purchases will lead to profitability over the average lifetime value of a customer.

Asking prospects and customers directly is a simple, great way to get feedback about their perceptions of your price points in relationship to their perceived value of your products and services. Test your pricing when you can, which is especially easy on the Internet, where software you can install on your own hosting account and third-party services such as Google Analytics make it easy to do A/B testing, or even multi-variate testing. Use every available means to determine the “sweet spot” for the price of your goods and services.

How to Be Successful in Business in 2010. The Simple Version.

Be of great service and provide significant value. Help others move out of their pain and into joy and happiness.

Do these things – in any economy – and you’ll be successful when others are struggling.

What’s Your Opinion?

Are we, indeed, in The New Economy that’s here to stay, or is this just a “hiccup” that’s going to return to the way things were when we “recover” in coming months?

Is what’s happening now solely a matter of economic circumstances, or has what’s happened in the past three years created a change in people’s beliefs, thinking and feelings that has a much wider implication for how to be successful in business today and into the future?

What’s the best way to win at business in 2010 and beyond?

Please leave your thoughts, opinions and stories here for me and others to benefit from!

Jay Aaron Strategic
Visionary / Visionary Strategist
Follow me on Twitter: http://Twitter.com/newthoughts

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