Our hearts remain with those in Houston and, now, South Florida, who have been dealing with such a massive disruption of their lives — and during a time of year that is already one of the busiest.
The IRS has set up a “catch all” page for those cleaning up from Harvey, Irma, and other such disasters, and it can be found right here: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations. And here’s a recent article that goes into deeper detail about financial and data recovery in the wake of disasters: https://www.accountingtoday.com/news/irs-offers-taxpayer-disaster-planning-and-recovery-advice-for-hurricane-irma
And, of course, if you have been impacted by any of these disasters in any way, we are here for you (or for your friends)! Allow us to help you sort through the financial muck so you can better deal with all of the mess of cleaning up other aspects of your life.
A couple more reminders, before I get to my subject of the day.
1) Friday, September 15th is the estimated tax payment deadline for the third quarter. Our existing Long Island and Stamford clients were given vouchers to make it easy (albeit never fun), so let us know if you need any quick input there…
2) Corporate extensions are also due that Friday. This really only applies to you if we handle your S- or C-corp returns (which, of course, we do for a variety of our individual clients and friends). We’re on top of this on your behalf, if that’s you.
And, well, speaking of Long Island and Stamford businesses, I have too many friends who start one, or seek to turn around a flailing one, using this principle as a guiding light.
That would be a mistake.
Why Price Reductions are Bad Positioning for (Almost) Any Long Island and Stamford Business
“How many things in your life do you do automatically, routinely, that are a waste of time but you don’t take the time to remedy them?” -Robert S. Scott
I discuss this all the time with my Long Island and Stamford business owner clients — how to price their services. You see, often, we might hear consumers say, “Well, I would buy it if it were in my price range.” And, that idea tempts many business owners to lower their prices–just to sell more products.
However, as you already know, price reductions sometimes create more problems than they solve.
For example, price reductions…
* Decrease net profits
* Lead to the purchase of lower-quality products
* Increase customer demands to drop the price even lower!
* Require even more sales to make up the difference in revenue
* Need a larger quantity of products
And, in the end, there will always be someone willing to go out of business faster than you.
Remember this: price is not a benefit. The close of a sale is not determined on the cost of your product. If you truly “sell” your customers and prospects, they will purchase your products/services no matter what price you determine.
That’s the plain truth — and you’ve probably seen it in your own purchase patterns.
If a customer or prospect doesn’t buy — and they claim the cost had something to do with it — you can guess they probably wouldn’t have purchased anyway.
As a small business owner, and marketer, your job is to sell your products and services. But the actual art of selling has nothing to do with the price of the product.
By the time your contacts find out about the price, they should be determined to purchase no matter what the cost.
So, find “real” benefits (value) to sell to your customers and prospects. Help them to see how great their life is with your product, and you’ve got a customer. Point out their current pain, and your contact will do anything to get rid of it.
Set your prices and hold fast. If you’ve marketed correctly, you will still have customers anxious to do business with you.
Price gouging is a horrible thing — but, really, that’s a bogeyman that lives more in our heads than in real life.
Charge your worth. You deserve it.
Feel very free to forward this article to a Long Island and Stamford business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we also specialize in tax preparation and planning for Long Island and Stamford families and business owners. And we always make room for referrals from trusted sources like you.
Michael J. Kessler, CPA
PS–Join us for our show Business Profits In The Real World Saturday afternoons at 4 on 103.9FM WRCN where we bring you Long Island and The New York-Metro’s most successful business owners sharing how you too can bring your business to among the most profitable in your industry. No radio? No problem! Listen live at LINewsRadio.com – or can’t listen live? Hear our past shows at MichaelKesslerCPA.com
PPS—Check out the latest edition of our monthly newsletter, Wealthy and Wise, HERE