Thursday, February 4, 2010
Monday, February 1, 2010
Are Lower Prices Good for the Economy?
"How low can you go" is a popular phrase in the lyrics of a trance dance track in the late 1980's. The phrase is also apropos to describe how business owners are fighting for tight consumers dollars. Just about every industry is trying to compete based on lowering prices.
Restaurants, wireless companies, hair salons, plumbing and A/C heating crews and many others are rushing to lower prices to stay in business. But is this good for the American economy? It depends on who you ask and what your role is in the movement of products, goods and services.
Workers who lost their jobs and the potential of higher unemployment cause people to change their consumer shopping habits. Consumers facing lower to no income make choices according to what household budgets can afford. Just the potential loss of income has conditioned consumers to shop less at high end retail and luxury personal care establishments.
So what does this mean for business owners? It's a double-edge sword for many business owners. On one hand, businesses must price their products, goods and services for a decent profit while watching the competition and unrelated industries drop prices. On the other hand, dropping prices shrink margins to a point where it's tough to stay in business.
In addition to falling prices and slimmer margins, consider the psychological impact discounting prices has on the workforce. Owners who lower prices must either layoff workers or hire at lower hourly wages. As readers may see, this cycle of events reduces consumers purchasing power. What's most tragic is workers are becoming forced and humiliated to race to the bottom of our economic society. Recent mass job fairs show city streets lined with workers seeking minimum wage jobs. I guess it's better to make some money than no money.
Readers may ask what's the point to writing this blog. If small business owners succumb to downward pricing pressures, then small business services are at the isk of extinction. When is the profit margin too low to make operating your business a good return on investment? As profit margins fall, so does customer service and quality, and ultimately, the business!
Now is the time to separate yourself and business from other business who will become fodder to falling prices and decaying economic conditions.
Now is the time to develop a strong marketing plan to identify people and businesses who can afford and will appreciate your services.
Give us a call at (530) FIND-BIZ to learn how we can promote your business to the community on a regular basis at very affordable prices.
Thanks for reading this blog.
Restaurants, wireless companies, hair salons, plumbing and A/C heating crews and many others are rushing to lower prices to stay in business. But is this good for the American economy? It depends on who you ask and what your role is in the movement of products, goods and services.
Workers who lost their jobs and the potential of higher unemployment cause people to change their consumer shopping habits. Consumers facing lower to no income make choices according to what household budgets can afford. Just the potential loss of income has conditioned consumers to shop less at high end retail and luxury personal care establishments.
So what does this mean for business owners? It's a double-edge sword for many business owners. On one hand, businesses must price their products, goods and services for a decent profit while watching the competition and unrelated industries drop prices. On the other hand, dropping prices shrink margins to a point where it's tough to stay in business.
In addition to falling prices and slimmer margins, consider the psychological impact discounting prices has on the workforce. Owners who lower prices must either layoff workers or hire at lower hourly wages. As readers may see, this cycle of events reduces consumers purchasing power. What's most tragic is workers are becoming forced and humiliated to race to the bottom of our economic society. Recent mass job fairs show city streets lined with workers seeking minimum wage jobs. I guess it's better to make some money than no money.
Readers may ask what's the point to writing this blog. If small business owners succumb to downward pricing pressures, then small business services are at the isk of extinction. When is the profit margin too low to make operating your business a good return on investment? As profit margins fall, so does customer service and quality, and ultimately, the business!
Now is the time to separate yourself and business from other business who will become fodder to falling prices and decaying economic conditions.
Now is the time to develop a strong marketing plan to identify people and businesses who can afford and will appreciate your services.
Give us a call at (530) FIND-BIZ to learn how we can promote your business to the community on a regular basis at very affordable prices.
Thanks for reading this blog.
Thursday, January 28, 2010
Wednesday, January 27, 2010
Your Secret Weapon: You
Greetings business owners across United States, Canada and throughout all parts of this world! We're just about done with this first month of the year 2010. So, the question is how is your business going so far?
Specifically, the U.S. economy is stumbling along trying to find its way back to prosperity in the midst of growing deficits, high unemployment, limited business lending and great overall uncertainty.
The U.S. President is delivering the State of the Union speech Wednesday evening to reassure the country that America is in the process of "repairing" the damage done by the last administration. He also is trying to make amends for spending billions of dollars on "shovel ready jobs" that have had little impact on adding jobs to the economy. In some respects, in my opinion, America is worst off now than she was before the current administration.
So what are you going to do as a business owner to ensure your business stays healthy? As I traveled across the country over the last 90 days, I witnessed some discouraging behavior and heard lots of negative self talk about the business environment in America. From Davenport Iowa to Tampa Florida to San Jose California, many business owners are experiencing their personal "come to Jesus" moments in dealing with declines in business revenues.
Business owners are accepting the status quo mantra to just "hang on in there" until the economy improves.
Let's me say this right now. You are responsible for your business. You are the economy. You are the business. Peppered with boldness, one might say that these statements are over-the-top and downright insensitive to the business community. Please don't look at it this way. You are the almighty business owner, the captains of your industry. To some people living outside North America, you are what the American dream is all about. You just don't believe that you are all powerful and capable of reaching genius level in the eyes of the public.
It's you, Mr. or Ms Business Owner. Your education, training and experience have positioned you to move products, goods and services like no one can. In the simplest terms, you are the GDP, the gross domestic product! When business revenue is up, GDP is up and people are working. Your reward for increasing the GDP is a high payoff unlike any other way to earn a living in America that's legal and ethical.
You are also the practicing engineer of your business. You are the technician who should be able to sense what course corrections to take when business revenue begins to fall. Like a captain at sea, you sense that you need to go to the cabin or to your secret place of refuge and retreat to map out new strategies to navigate your business through rough seas. Like a surgeon operating on a patient with a chronic condition, you can diagnosis the ailment by using your mind and tools to bring your business to a full recovery. But why does it seem like you cannot step up to the plate and take complete control of your business?
As a former soldier in the United States Armed Forces, we are trained to analyze a situation to successfully complete the mission according to orders communicated by the commander. Of course, loss of life is not necessarily at risk for business owners, but loss of liberty certainly is. Precious liberty is loss when you give up or forgo a lifestyle because your goals and objectives have fallen short of the requirement. This is why it is so important to do whatever it takes to stay in control of your business.
Most businesses are not that far from success. Your position in life that allowed you to start your business is still in your favor. Remember, your efforts are essential to the GDP equation calculation. Don't lose your competitive edge to maximize your ROI as a business owner.
You are in charge of your business.
Go out and introduce yourself to five new people today. This is the fastest way to grow your business. If you need help, enroll your business in the Echamber of Commerce at http://www.echamberofcommerce.ws/ or give us a call at (888) 824-6919 or dial direct at (530) FIND-BIZ.
Make it a great day!
Clarence "Rick" Nappier
Specifically, the U.S. economy is stumbling along trying to find its way back to prosperity in the midst of growing deficits, high unemployment, limited business lending and great overall uncertainty.
The U.S. President is delivering the State of the Union speech Wednesday evening to reassure the country that America is in the process of "repairing" the damage done by the last administration. He also is trying to make amends for spending billions of dollars on "shovel ready jobs" that have had little impact on adding jobs to the economy. In some respects, in my opinion, America is worst off now than she was before the current administration.
So what are you going to do as a business owner to ensure your business stays healthy? As I traveled across the country over the last 90 days, I witnessed some discouraging behavior and heard lots of negative self talk about the business environment in America. From Davenport Iowa to Tampa Florida to San Jose California, many business owners are experiencing their personal "come to Jesus" moments in dealing with declines in business revenues.
Business owners are accepting the status quo mantra to just "hang on in there" until the economy improves.
Let's me say this right now. You are responsible for your business. You are the economy. You are the business. Peppered with boldness, one might say that these statements are over-the-top and downright insensitive to the business community. Please don't look at it this way. You are the almighty business owner, the captains of your industry. To some people living outside North America, you are what the American dream is all about. You just don't believe that you are all powerful and capable of reaching genius level in the eyes of the public.
It's you, Mr. or Ms Business Owner. Your education, training and experience have positioned you to move products, goods and services like no one can. In the simplest terms, you are the GDP, the gross domestic product! When business revenue is up, GDP is up and people are working. Your reward for increasing the GDP is a high payoff unlike any other way to earn a living in America that's legal and ethical.
You are also the practicing engineer of your business. You are the technician who should be able to sense what course corrections to take when business revenue begins to fall. Like a captain at sea, you sense that you need to go to the cabin or to your secret place of refuge and retreat to map out new strategies to navigate your business through rough seas. Like a surgeon operating on a patient with a chronic condition, you can diagnosis the ailment by using your mind and tools to bring your business to a full recovery. But why does it seem like you cannot step up to the plate and take complete control of your business?
As a former soldier in the United States Armed Forces, we are trained to analyze a situation to successfully complete the mission according to orders communicated by the commander. Of course, loss of life is not necessarily at risk for business owners, but loss of liberty certainly is. Precious liberty is loss when you give up or forgo a lifestyle because your goals and objectives have fallen short of the requirement. This is why it is so important to do whatever it takes to stay in control of your business.
Most businesses are not that far from success. Your position in life that allowed you to start your business is still in your favor. Remember, your efforts are essential to the GDP equation calculation. Don't lose your competitive edge to maximize your ROI as a business owner.
You are in charge of your business.
Go out and introduce yourself to five new people today. This is the fastest way to grow your business. If you need help, enroll your business in the Echamber of Commerce at http://www.echamberofcommerce.ws/ or give us a call at (888) 824-6919 or dial direct at (530) FIND-BIZ.
Make it a great day!
Clarence "Rick" Nappier
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