How Having a Bargain Pricing Strategy Could Hurt Your Business

How Having a Bargain Pricing Strategy Could Hurt Your Business

Published in Uncategorized on 18th May 2016


Walk down an aisle in Walmart and you’ll be met with blue signs and yellow smiling faces showing off their “everyday low price” items. 

It’s a pricing strategy that’s at the core of their brand. They built their entire business around a bargain pricing strategy.

Looking at the Walmart business model alone, it would make sense to assume low prices are what customers want. After all, cheap products have enabled the retailer to open 10,000 retail stores, employ millions of people, and gross $476 billion in sales in 2014.

The strategy, according to Sam Walton, founder of Walmart, was to make up for slim margins through the volume of sales.

This is known as promotional pricing.


What is Promotional Pricing?

Promotional pricing involves selling products at a steeply discounted price. The price reduction is most often unsustainable for business growth. The goal is to use the low prices to allure customers through the door.

Walmart uses the everyday low price options to get people in their stores in the hopes they’ll buy other, higher priced items. They aren’t alone in adopting the promotional pricing strategy.

Costco uses a similar approach by selling bulk items for a reduced price. They inflate the value of each item by selling in large quantities.

Related Article: The Game of Pricing: How The Number 9 Affects Purchase Behavior


Is This Strategy Right for You?

Not necessarily. Look at one of Walmart’s big competitors for proof; Amazon.

Walmart’s stock prices are starting to take a dip, dropping 30 percent in the last part of 2015. This comes on the heels of an increase for Amazon with a steady growth rate of approximately 20 percent every year.

Although Amazon is known for also having low-priced items, they haven’t built their brand around a bargain pricing strategy. As a result, they’re coming out ahead with new projects in the works (they’re looking at building a retail site in the near future) and higher profits.

If your business is still in a price war with the competition, you are hurting your company. Here are a few reasons why the bargain pricing strategy is starting to fail, and why it could be damaging your brand.


You’re Losing Money

Sure, the everyday low pricing might sound like a smart strategy. It helps you lower inventory costs, coordinate better with supply chains and sell more, more, more. But, even if you’re pushing product off your shelves faster than the competition, you’re still losing money.

Promotional pricing on products yields an average of $6.2 million more per year in revenues than the everyday low price strategy, according to a recent Stanford study. The study also showed that everyday low pricing cost businesses more on the front end with Walmart experiencing a $1.7 million loss in annual revenues compared to the $690,000 loss by companies using a promotional pricing strategy.

Related Article: Fashion Forward: Top 10 Retail Trends for 2016


You’re Locking Yourself Into a Particular Market

Once you have a bargain pricing strategy locked in, you’re stuck there for the long haul. Changing from low pricing to mid-level pricing down the road is expensive. You’ll lose your customer base who has come to rely on you for the best deals in town, causing you to have to spend a good chunk of money to promote your business to a new demographic, the type of people who don’t mind spending some extra money for higher quality goods.

Before you get too far into a low-price strategy, think about how you will scale and grow. Are you focusing on moving products off your shelves, or are you bringing in the right type of customers to buy from you long-term?

Loyalty often times means more to long-term revenues. Bargain price shoppers tend to migrate to whomever is offering the best deal.


You’re Diluting Your Brand

If you’ve already locked yourself into a bargain pricing strategy, beware. Keeping that pricing is essential if you want to keep the trust of your customers. Walmart ultimately tried to compete with the promotional pricing models (their competition) and lost. They introduced “rollback” pricing, which caused customers to stop seeing them as the best deal in town.

Related Article: Beacons are Beckoning: How Mobile Technology is Changing Retail


What’s Right for You?

The answer is, it depends. If you’re currently using a promotional pricing strategy, you’re much better off sticking to that strategy than trying to cheapen your prices. If you’re currently known as the low cost store among your competition, changing your pricing now could mean hurting your brand even further.

Understand what the market perceives your business as and then use that to find out what pricing strategy is right for you.  

What You Should Do When Everyone in the Office is Sick?

What You Should Do When Everyone in the Office is Sick?

Published in Uncategorized on 17th May 2016


There’s a nasty bug going around offices across the nation this season.

For reason’s unknown to employees everywhere, cold and flu season has reared its ugly head a second time this year to include a spring session.

If you’re lucky enough to have stayed healthy so far, it’s safe to guess that you’d like to keep it that way. If you’ve already got/had it, it’s also safe to assume that you’d like to steer clear of the next one for a while.

After having my fair share of office illnesses this year, I decided to do some research to figure out how I can better prevent illnesses as they hit my workplace. Here are the best tips I found during my research.

Related Article: Is Your Job Killing You? How to Stay Healthy at Work


1. Keep Your Cups Clean

As we fill our water bottles and coffee mugs each morning, it can be easy to forget the fact that they’ve been sitting out for part of the day and all of the night before. If you leave your cups, mugs, and water bottles on your desk in between use, be sure to clean them meticulously each morning with hot water and soap. Office germs are commonly spread through sneezes and coughs that reach the items we use throughout the day.

On that note, it will be extremely important to keep your water glass or bottle clean and full throughout the day. According to Joel Blass, medical director at Workmen’s Circle MultiCare Center in the New York, “Losing fluids tends to dry your mucous membranes, weakening that first level of defense, which in turn makes you more susceptible to contracting cold and flu viruses.” 


2. Eat Outside of Common Areas

Avoiding others with the office bug as much as possible is an important part of preventing illness. You’ll be stuck with others who are sick during meetings or if they sit around you at your desk, but taking a lunch break away from them helps to decrease your exposure, especially since lunch typically includes eating and drinking.

If you can, take your lunch at home or go out to lunch a couple times during the week to get away from others who’ve contracted the office illness. If you yourself are sick and still contagious, it would be courteous of you to either take a sick day or at least take your lunch outside of the common areas.


3. Sanitize Frequently

The Purell at your desk really proves its value when a cold or flu hits your office. Each time a sick coworker visits your desks or stops for a conversation in the hallway, be sure to quickly follow that interaction with hand sanitizer. Keeping a tube of antibacterial wipes at your desk can also help by allowing you to frequently clean germs off of your desk if others around you are coughing or sneezing.

One additional tip I received from a physician was to cleanse my face, arms, and hands immediately after returning home. Even if it means reapplying your makeup to go out later, washing the germs off with warm water and soap prior to getting settled in at home will help keep colds and the flu at bay.

Related Article: How To Stay Healthy When You Sit At A Desk All Day


4. Enlist Homeopathic Help

Although homeopathic remedies are often met with skepticisim, many healthcare professionals and individuals swear by their powers when it comes to cold and flu prevention. Some of the top homeopathic supplements Web MD suggests to prevent or shorten the duration of a cold or flu include Echinacea and Elderberry.

Experts suggest that purchasing a humidifier for your desk can also help prevent the spread of cold and flu viruses. According to Health.com, influenza virus transmission can be greatly affected by how wet or dry the air is.

If you’d like to super charge the powers of your humidifier, essential oil pros suggest that you add two drops each of rosemary oil, eucalyptus oil, cinnamon oil, and orange oil to your humidifier for an added immunity boost.


5. Get Plenty of Sleep

According to a recent study, adults who sleep less than five or six hours a night are more likely to catch a cold than those who consistently get at least seven hours of sleep. If an office cold is going around, one of the simplest things you can do to prevent getting sick is to get a good night’s sleep.

If you have a busy schedule, try to clear a few items out of it to stay healthy rather than try to push through. If you have trouble sleeping at night, natural remedies like melatonin can help without making you feel groggy the next day.

On top of getting enough sleep, reducing stress can also help strengthen your body’s defense against cold and flu bugs. Although most jobs are naturally stressful from time to time, there are steps you can take to create a less stressful environment for yourself.

Related Article: Bullying in the Workplace: Is California’s Healthy Workplace Bill the Answer?


6. Take Your Vitamins and Minerals

This should be a given, but taking the right vitamins and minerals is an essential part of fighting off illness. A multi-vitamin should do the trick, but if you’re worried during cold and flu seasons, it might be worth it to take a few extra supplements. Some of the most important vitamins and minerals you’ll need to ward off illnesses are Vitamin C, Vitamin D and Zinc.

Hopefully this guide will help you prevent the next cold or flu that hits your office. If you’re currently the “sick one” at your office, you might consider taking steps to help your coworkers achieve this goal too.

You can find additional tips for that here. If you’ve got some tips of your own, I’d love to hear them.

Making Money Online

Making Money Online

Published in Make Money Online on 1st September 2015

Want To Make Money Online? Take A Look At This

Have you always dreamed of making money online? A lot of people are doing it right now. There are many opportunities on the Internet which you can take advantage of. This article will show you what you should look out for when searching for that golden opportunity to make money.

Try doing some surveys online. You will not make as much money as you would with some other types of online work. These surveys usually do not take long, and they usually just ask for your opinion. If you join a legitimate survey site, those cents can quickly add up to some extra cash.

Determine how much money you should get for your time prior to doing any work. If you want to work, what is the lowest rate you’ll accept? If you are okay working for peanuts, that’s all you’ll ever get. People won’t be willing to pay you as much.

Figure out how much you are looking to make before you begin. For example, I don’t want to work for less than $15 per hour, otherwise spending time with my family or completing chores would be more worthwhile to me. What is your worth? Once you determine it, stick to your guns!

Beware sites where you have to make a bid to complete someone’s work. These sites devalue you based on the fact that the lowest bid most frequently wins. There will be some people hiring on these sites who are decent, of course, but the bulk just want their work done cheaply.

You can see that making money online is very possible. You just need good information to point you in the right way. Just remember that you will need to put in time and effort on it. Nothing will be handed to you on a silver platter. However, if you put in the effort, you will reap your rewards.

Sometimes We All Need Motivation

Sometimes We All Need Motivation

Published in Uncategorized on 16th June 2015

This is a great video that really hit me hard and made me emotionally aware of my struggles and hardships but gave me the strength to move forward.  Here you go https://www.youtube.com/watch?t=16&v=26U_seo0a1g

Best Jobs For People With Disabilities At Home

Best Jobs For People With Disabilities At Home

Published in Best Jobs For Disabled People, Make Money Online on 28th August 2013

The job you once had might not be feasible any longer, thanks to a disability. That disability does not stop you from working, just from working in the field you are accustomed to. There are several ways to stay at home and still earn a decent living to supplement the living allowance you receive.


TypingDo You Like Writing?

If you have a knack with words, many companies hire online writers. Lots of them are businesses which take on work and distribute it to writers. They never meet their employees.

Many operate many miles from where you live, but that is the beauty of the internet. As long as they pay on time and regularly, and you have a Paypal account, you could be on your way to earning several hundred dollars a month.

One negative of this type of earning is that the pay for each assignment could be very low. On the other hand, easy jobs can be finished quickly, meaning you are capable of completing many each day. It is possible for you to work full-time at this job if the person you work for has enough assignments to keep you busy, and there are usually assignments available 7 days a week.

You could also work as a freelance writer getting jobs from magazines and newspapers. This means having the courage and people-skills to conduct interviews and pursue work, but if you have flair and understand the publications you approach (their audience and tone) this could be a good way to add to your income.

Become an Affiliate

While the average affiliate marketer seems to barely earn anything from selling makeup or Tupperware, some individuals have a real strength in this area. They know whom to call, how to organize parties effectively, and have people calling them rather than the other way around. You know there have to be effective agents out there by the popularity of some companies.

Could you be one of those?

This is a great way for a disabled person to earn money and have fun. Affiliate marketing is a social occupation. The people who are most successful at this are genuine, yet persuasive.

They know lots of individuals, enough from which to draw a potential market for their products. Choose to sell something you really like and believe in. Because of your reputation for honesty, word will get around that what you are selling really does what you say it does.

Answer Questions

Sometimes, answering questions can be to your benefit. You have probably been called by a survey company before and there was nothing in it for you.

Certain companies actually pay people to answer questions, sometimes daily. Do a bit of research: this can be a highly convenient option because all you need is a fast computer that accepts the latest version of Flash.

Some companies have gone to lengths to ensure their credibility so they have an online reputation you can check. Certain firms pay money; others issue points, offering “rewards” you cash in after completing a large number of surveys.

Online Sales

Do you have something to sell, like jewelry or a skill you can share without going anywhere?

Consider marketing this skill online. Open your own retail business and sell goods or services to clients. There are risks and costs in this kind of work, but these could be outweighed by the benefits if you manage to build up clientele.

Costs include Paypal fees or NSF charges if clients send dud cheques. There is also the cost of starting a website. Still, working for your self could be highly satisfying and creative.

Taxation

Remember that working from home has benefits besides the payment you receive. Think of how much you paid just to get to work every day. There were transportation costs such as bus fare, train fare, or the vast amount you paid to run a car. If you have children, daycare had to be taken into account. Your wardrobe had to be up to snuff as well.

Now you dress how you like and the kids are at home with you. There is nowhere to go, so no fees for transportation. One of the best points is that your job is a tax write-off. Everything you use to work — lighting, heating, internet, etc. — can be claimed at tax time.