"It is time to lower the price." Competition, entering a new market, bad economy, and lack of success are all reasons you might have this thought. Is it worth the risk to lower price knowing it will impact your profit margin?
Moving forward, instead of lowering prices and firing staff, consider what it takes to increase profitability with SMART Revenue.
(1) Assess your strengths.
Select the top three to five offerings and focus on those.
You don’t need to abandon the remainder of the list, just don’t invest time and resources on those offerings.
(2) Examine your internal alignment.
Do you have the right people in the right places?
Do you have the right internal flow & processes in place?
Is the necessary equipment available?
(3) The Competition.
Identify the competition, who are they?
What does your competition do best?
What are their weaknesses?
What is their unique market differentiator?
What is their go-to-market strategy?
Where does each of them rank in terms of market share, size, and profitability?
Create a living spreadsheet listing as much information as possible.
(4) Your customers and clients.
Use surveys and interviews for feedback.
Interview your best clients, those you struggle with, and those who got away.
Learn why they stick with you, why they might leave, and why you didn’t get the work in the first place.
Examine and update your information at least twice per year. Don’t worry if you don’t have all of the information at once. With more focus, you’ll soon be achieving SMART Revenue.