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Archives for May 2019

Taking the pain out of pricing - how much should you charge?

Taking the pain out of pricing – how much should you charge?

Figuring out how much to charge is a big learning curve for any business owner. The answer to how to approach it will fluctuate as circumstances and markets change. It is important to revisit the question throughout the lifecycle of your business.

There is no magic formula

All businesses are unique, with an individual offering of products and services. Before you set your pricing, It’s important to look at the whole picture. This will help to ensure you are being strategic and not just following trends.

Gather the dataTo get started, you need to gather as much information as possible. Block out some time to sit down with your business data and strategies. Pricing is essentially figuring out where your products and services are positioned in the market. So keep your business strategies top of mind. It doesn’t have to be a confusing exercise. Just grab a coffee get started.

Here are the first steps to consider:

  1. Record all the costs involved in production. Make sure you include indirect costs, such as assets, insurances, licenses and legal costs.
  2. Now that you have your outlay, consider your current profit margin or what margin you require. Remember there is a difference between net and gross profit margins. Net margins take all operating costs into account.
  3. Do your competitor research. Be thorough in understanding the market and what others are charging for the same service or product or variations of this. What unique selling points (USPs) does your business have that allow you to vary your prices?
  4. Think about your offerings. What extra benefits or offerings do you have that can affect your pricing? Think about cheap and no-frills on one end of the spectrum, versus high-end premium products. Can you create different products at different prices to cater to different segments of the market?

Don’t forget to check in on your pricing regularly to make sure you’re keeping up with your customers and staying ahead of the game.

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Is your business attracting the right talent?

Is your business attracting the right talent?

When people talk about ‘brand’ they often think solely from a customer perspective. However, a strong ’employer brand’ is also critical, in order to attract the right talent to your business. A company’s employer brand is twice as likely to drive job consideration as its company brand. With a shift in skill-set requirements across most industries, and Gen Y entering the workforce, it’s more important than ever to attract the right potential employees.

So how do you go about attracting great talent to your business? Laura Weaving, Founder of Duo Global Consulting has the following tips:

Your Employer Brand

Gen Z and Gen Y candidates are 61 percent more likely to choose a job based on the perception of the business as an employer. When you have a role to fill, make sure you:

  • Describe the great working environment in your job description and publish this on your website and on social media
  • Add a careers page, with details on the company culture as well as the job
  • Provide some insight into company life, or why people would want to work for you.

Establish your Employer Value Proposition

This is your unique set of offerings, associations, and values that positively influence target candidates and employees. Overall, companies without an employer value proposition and a weak employer brand, report a cost per hire that is almost double that of companies with a strong employer brand. Without it, it’s extremely hard to attract the right potential employees and even harder to hire someone who is the right fit for your company.

When it comes to attracting talent, a strong employer brand therefore not only increases consideration, it is also a smart business investment.

Additionally, if an organisation has a strong employer value proposition and employer brand, especially one that resonates with current employees, it will also have a significantly lower staff turnover rate. Companies with a stronger employer brand have a 28 percent lower turnover rate than companies with a weaker employer brand.

The first step to developing an employer value proposition and effective employer branding is to assess your audience. Organisations need a strategic platform, with a compelling message at its core. This message should be the result of a thoughtful research program which assesses target audiences, tests messages and highlights the mediums in which ideal talent pools will consume your employer information. Without them, you will most likely execute the same recruitment programs over and over again, with the same average results.

Communicating your Employer Brand

Build personas of the types of talent you’d like to hire. And from here you can build your profile of your ideal candidate. These can include:

  • Education
  • Work experience
  • Personal activities
  • Aspirations and goals
  • Values
  • Personal life and family situation.

Once you have that profile, build your questions to ask in order to ascertain whether potential employees fit your ideal profile. You can tailor the advert and medium to speak to that profile.

Succession Planning

You should be looking at what positions you will need to hire in six to twelve months and what skills are required so you can build an internal talent pipeline. You don’t want to be working against the clock when the need arises to hire. Work ahead of that point and build a relationship with your ideal candidate. Additionally, with a lot of ideal candidates being already happy in their current roles, you will require the time to build that relationship.

Ensuring that your employer brand expresses your culture, environment, values and strategic vision is important. Investing to strengthen your employer brand, if done right, should help increase consideration of your company, lower recruiting costs, and decrease voluntary turnover.

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What is employee engagement and why does it matter?

What is employee engagement and why does it matter?

An engaged employee is a team member who is fully absorbed by and enthusiastic about their work, and who takes positive action to further a company’s reputation and interests and achieve their goals.

More importantly, what does a disengaged team member look like?
The symptoms range from a negative attitude, poor communication, absenteeism, lack of initiative, laziness, lateness, lack of participation, and doing the bare minimum at work… all the way to actively damaging the company’s work output, culture, and reputation.

The impact of having a single disengaged team member can be catastrophic.
The effects are not limited to their own poor productivity and output. This person can infect the core of your culture; damaging morale and lowering the performance of the entire team. They could even cause the resignation of a key team member or, if client facing, cause irreparable damage to your brand.

Improved employee engagement leads to improved productivity and performance.
Numerous studies have proven that companies with engaged employees significantly outperform others. Why is this? People who are engaged in their role want to come to work, therefore take fewer sick days. This ultimately leads to reduced team turnover and less unproductive time spent recruiting and inducting new employees.

Not surprisingly, team members who are engaged feel more supported by their peers and are more likely to work collaboratively, leading to significantly less re-work and wastage. Also, fewer workplace accidents and incidents occur when team members are engaged. All of the above reasons contribute to much higher productivity and profitability.

The Engagement-Profit Chain* is another take on why engagement improves performance:
Engaged employees leads to… higher service, quality, and productivity, which leads to…higher customer satisfaction, which leads to…increased sales (repeat business and referrals), which leads to…higher profit levels, which leads to…higher returns.

There is a difference between employee happiness and employee engagement.
Your team could be happy but not necessarily working efficiently and productively to deliver optimum outcomes.

A number of factors can influence and improve employee engagement. These include developing and utilising Core Values, documenting an effective Organisational Chart, providing clarity on the roles and responsibilities in your organisation, and introducing KPIs to help define what a good day’s work looks like for your team.

Need help building a happy and high-performance working culture? Get in touch.

“To win in the marketplace you must first win in the workplace.” – Doug Conant

*The Engagement-Profit Chain was created by Kevin Kruse

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