A number of the blogs and forums I read for small business – especially for restaurants, concessionaires and food trucks are filled with questions about increasing sales. There are so many ways to spend hard earned dollars to get the word out. And hundreds of large and small companies willing to take your dollars and tell you what to do. I’m just going to, as Anton Ego requested in Ratatouille, offer a little perspective. Perspective, some farmeworks and ideas that might help you evaluate you own situation. The web and your local community college are full of resources. Use them!
Every Thing Works
Yes, every marketing/sales/ad idea works. For someone. For some product. For some demographic. For some price. For some time. The question is what will work for you? To answer that, in addition to your goals, you need to know:
- Your Customer
- Their Demographic
- Your Product(s)
- Your Timeline
- Your Resources
Let’s start with product pricing.
Price or Value
What should I charge? You can based your strategy for your product or company on price or on value. $1 burgers are sold on price. Ruth Chris sells steaks on the value of the brand and the product. The important thing to understand is that either strategy can be successful! And each may have a place in your repertoire of success. Value based strategies help maintain profit margins, but that route can be a long slow road to recognition and revenue. Price-based sales strategies can be fast and furious, but are often called the race to the bottom for good reason. Someone can almost always undersell, especially when a small vendor tries to compete against a large one with more resources. Walmart versus the little guy. My personal opinion is that as a very small vendor (VSV) you need to have a value-based strategy with price sensitivity.
Pricing must reflect your niche, your costs, and your competition. Are you, like us, a food booth at a farmers market or are you in a food court in the mall with a different cost structure? What are the typical financial ratios for your operation. How close are you to your industry norms?
Upcoming talking points:
- Who is your Customer Current, future
- What is their Demographic
- By the Numbers – pricing your product(s)
- Your Timeline – trends, fads, locales
- Your Resources – money, time, ability
- Marketing Tools
- Sales Tools
- Advertising Tools