“Pricing.” I thought to myself. The answer is their pricing.
Once again I was faced with a business owner who was busting his behind off to make things work. To make the numbers. To please the customers. To get more of them. To pay the bills. To be able to do what he dreamt of. Only, the dream had slowly but surely been turning into a nightmare.
The same thoughts crossed my mind when I was working with large corporate companies who were once again faced with stringent cost-cutting exercises to make the numbers look as the board wanted them to look. And all I could think was: it’s not the costs… Well yes, surely it helps if you don’t overspend on silly stuff but at a certain point you cannot really go much lower without hampering the product’s or service’s quality right?
Yet not many people know how powerful this seemingly ‘last stop’ before going from a ready product to a first sale is. If you’re like most companies on the planet, setting the price is the last bit you take care of in the five minutes left between shipping the product and putting it on display in a shop (be that virtual or brick).
But boy what a difference it makes!
If you set the wrong price, the world is not a good place…
You get anxious, the bank is on the phone with you to hear about the red figures on the balance sheet, you work night and day to sell more and produce more, your suppliers are bugging you more and more about unpaid bills, you stop sleeping at night yet you work more hours than you ever have before. Your customers are picking up on your low self-confidence and your bad mood and are not impressed. You’re entering a negative spiral where all creativity and joy has left the building.
If you set the right price, great things truly happen…
You get to make a profit. You get to have the mental brain space to be nice to the people who work for you and with you. You have self-confidence and feel good about yourself getting up in the morning. Your customers love you because you’re not only selling something awesome, you and your colleagues are also showing up as the best version of yourself. You get to invest in further product development, you get to expand the business, you get to give back to all the good causes you believe in and support. Life is good.
I have worked in and with tiny (my mom’s jewellery shop), small (food startups), large (retail stores) and gigantic (the largest shipping company in the world) organisations. They all had one thing in common: when revenue was flowing in and profits were high, they were amazing places to be at. Creativity was flowing, people were excited, there was room for joy and celebration. This spread out to all people and communities surrounding these organisations – no matter their size.
When things were not going well, i.e. when there were red figures on the balance sheet, you could feel it in the day-to-day. People got anxious, the creative projects got cut and there was very little joy to be spread.
I think this can be better. I know it can be.
With a few small tweaks, any organization can improve its results.
At The Pink Enterprise we believe this requires commitment, some hard data crunching and smart analysis and then a huge amount of solid value work with the people in the business.
We believe you cannot just apply any random textbook strategy and simply apply it to your specific organization. We believe that for your business to thrive, you need to do what works for you. We believe that profits in itself are not a goal. Not at any cost.
At The Pink Enterprise, we believe in a pink bottom line: one that works for your people, your customers and your investors. In that order.
Get in touch if you’d like to Pink up your business 😉