Message from CT...

The key to success is the knowledge one gathers from the relationships we make and the experiences of others. If you have just discovered CT Jewelry Design, I encourage you to subscribe and follow along. Feedback is always welcomed! - CT

Friday, July 25, 2008

Pricing Guidelines

The price you charge your customers or clients will have a direct effect on the success of your business. The basic rules of pricing are very straighforward:

1. All your prices must cover your costs.
2. Regular review of your pricing must be done to assure that they reflect the changes in the market, the demand for your product or services and your competition.
3. Prices must be well established to sell your product or services.
4. The must effective way of lowering your sales price is to lower your costs.

Don't make the mistake of thinking that your prices are set in concrete. Changes in the economic situation and competition plus other factors should be considered when pricings. In general, the higher the price you establish, the lower the customer demand. If customers perceive that a product has a significant value, they will generally be willing to pay more for the product. But changes in the market can affect prices.

Make it your business to understand how to calculate your overhead properly so that when you quote a price to your customer you can be competitive and make the required profit you need to stay in business. - CT

Tuesday, July 1, 2008

Researching Your Idea

Searching for ideas for a new business opportunity can be an overwhelming task. However new markets open up every day with individuals trying to build a better mousetrap. There is nothing better than having your own idea and setting forth as your own boss, but will anyone buy your product or use your service? That’s the million dollar question.

The first thing to do is evaluate your idea. Ask several potential customers in the related market what you’re thinking about. Don’t go into too much detail but give them an idea of what you are planning. Ask for their honest opinion. This will not be 100% fool proof or accurate but it will give you a good idea if your idea is worth pursuing without spending any upfront money. If at least two or three say they would purchase your product or use your service then it’s time to get on a search engine of your choice and search for your competitors.

What you want to do is find out the following:
Who is your competition?
How many competitors are there?
How much are they selling their product or service for?
Can you tell if they are making sales?
Can you sell your product for slightly less?

Then consider these additional factors:
How durable is your market?
Is your product or service truly unique, a niche or a fad?
Will you be able to generate a large customer base or a selective few?
Do you have the knowledge to develop your idea or will you need additional resources?

Researching your idea may take you a week or longer, but it will help you in evaluating your business idea and may save you from making mistakes along the way. Above all choose an idea that you are passionate about and love…sell what you know! - CT

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