Is Your Business Model Working for You?

I think that sometimes we tend to stick to the tried and tested business approaches. Occasionally a radical new idea will work, but I think that some people are afraid to try them. Business in today's economy can be very scary, and I don't blame people for wanting to be a little cautious. Sam Lippert no doubt hit the jackpot with his idea, but it just as easily could have failed.

I have heard of a few businesses - coffee shops it seems - who have tried this. When they have been featured on the news or Evening Magazine, they were very successful, but I am curious about the long term follow-up.

I am looking for value and a final cost or price. At my company we try to include everything in the price. So I wonder if there is a way to "market" that business model. Go to a car dealership and they tell you 16995.00 for a new car. "what about the extended warrenty... or the floor mats... or the bug shield... or the 50 free car washes..." and they come back and say that also is included... taxes, fees, dealer prep and so on .... included. You pay 16995.00 and that is it. Instead it seems you pay 26000.00 for you 16995 car.

I have also seen recently a "suggested donation" pricing policy... mostly at coffee shops. That could work too.

I've found that my business model is working because I'm staying consistent with it and also making sure my clients definitely feel taken care of.

Taylor Ellwood http://www.imagineyourreality.com

I have been in business for 24 years and have embraced change through all of it. Once again I am in the process of retooling the way we deliver creative design solutions to our customers. Biggest change right now: I am not concerned with the perception of our size. We do the job, we're scalable and flexible. Am I ready to let clients name there own price?...maybe if they pay up front!

Always such thought-provoking questions, Hsuan-Hua. I think in some respects, as solopreneurs and small biz owners, we are way ahead of the big guys in this challenging economy.

We can retool our strategies to meet changing market conditions, easier and faster than the big corporations.

But I think the biggest thing is that we have always had the philosophy of giving our clients the best value for their dollars, helping them come up with creative, cost-effective solutions, and developing relationships with them. In this impersonal world, people are starved for personal attention and interactions. And they want to feel valued, appreciated and respected. Most of us are already doing this!

I feel positive about the changes that are happening around us. At Cat's Eye, we have always worked with clients' budgets, even if it meant recommending another service provider whose niche and specialty allowed them to do something for fewer dollars. That has always paid off for us in the long run because we develop incredible client trust. And clients always come back to us for the rest of what they need.

Staying "scalable and flexible," as Kevin said, is key.

I just changed my business model at the end of 2008 and it's been very successful for me. I offer a very low-cost service to attract a lot of people and a very high-end service to attract just a few people.

The low-cost service is my Action Plan Marketing Club where members get a ton of information, recordings, coaching calls, etc. for just $29 per month. www.actionplan.com/actionplanclub.html

The high end service is a year long marketing coaching program called the Marketing Mastery Program. www.actionplan.com/apmmm.html

This year I'll be launching a mid-priced service as well. I think it's important to keep looking at the services, programs and packages you are offering and keep responding to the needs in the marketplace.

Cheers, Robert

Wow, Robert. That's great. That's what I call responding to market needs.

Loving this discussion.

Be present-tuned-in to customers/cliets, and and adjust/do it now if there is a pattern. Ken