Biz Coach Terry Corbell
Biz Coach Terry Corbell reports discounting prices are not the miraculous solution for declining profits. He writes customer-service perceptions affect profits and he interviews a consultant who says companies often make 11 pricing mistakes.
The profit professional (http://www.bizcoachinfo.com) also suggests Starbucks as a business-school case study for price optimization and maximum profits. He contends many businesses can learn from the cost-cutting situation in which the coffee company finds itself.
“Now, questions about the company’s profits abound following a robust 20 years,” writes Mr. Corbell. “True, the company and investors are delighted that $175 million in cost-savings helped Starbucks’ Q3 earnings improve to $151.5 million compared a loss of $6.7 million the same period the year before.”
He is mindful of published reports that indicate the company’s profits had declined in significant double-digit percentages, prompting Starbucks to lay off thousands of employees as the company closed nearly 800 stores. But in citing customer-service perceptions, Mr. Corbell reports why cost-savings are only part of the profit-making formula and it appears Starbucks still has more footwork to do.
Further, he cites the theories of consultant Dennis Brown of Atenga, who believes companies mistakenly base their prices on their costs, not their customers’ perceptions of value.
Mr. Brown explains 10 other mistakes:
1. Companies base their prices on the marketplace.
2. Companies attempt to achieve the same profit margin across different product lines.
3. Companies fail to segment their customers.
4. Companies hold prices at the same level for too long, ignoring changes in costs, competitive environment and in customers’ preferences.
5. Companies often incentivize their salespeople on revenue generated, rather than on profits.
6. Companies change prices without forecasting competitors’
7. Companies spend insufficient resources managing their pricing practices.
8. Companies fail to establish internal procedures to optimize prices.
9. Companies spend most of their time serving their least profitable customers.
10. Companies rely on salespeople and other customer-facing staff for intelligence about the value perceptions of their customers.
Here’s the direct link to The Biz Coach report: http://www.bizcoachinfo.com/
Mr. Corbell also writes an Internet business-coaching column, The Biz Coach, for the Money News page at Seattle’s KIRO, the "2009 National Edward R. Murrow Award Winner for Overall Excellence."
As one of the Northwest’s longest-running columnists, he has written about 450 business-coaching columns since 2001. His columns are updated and archived on his Web site, The Biz Coach, http://www.bizcoachinfo.com, “Proven Solutions for Maximum Profits.”
It’s a business-resource site with performance-
As a business-performance consultant, Mr. Corbell routinely delivers 10 percent in added value for his clients. So, his columns also conclude with a bonus business-coaching tip he calls: “From the Coach’s Corner.” This particular column’s “Coach’s Corner” explains how many companies are frustrating their customers in their online shopping experiences.
Mr. Corbell often draws on his experience as a business-performance consultant and media columnist.
The New York Times featured him twice in 2008. For some his business tips, simply Google each of these headlines:
• Been There... Done That... Here’s How
• Advice on Taking an Entrepreneurial Leap
As a profit professional, he developed The CMS Approach. To relieve a company’s financial stress, The CMS Approach includes a financial turnaround program on a pay-for-performance basis. Mr. Corbell provides complete solutions for a small retainer and one percent of the net-profit increase.
He is managing member of CMS Associates LLC, http://www.cmsassociatesllc.com, which is long-known for providing “Solutions to Increase Revenue.” CMS is an excellent company with an outstanding record of success since 1992. The firm has insights, systems and strategies to save companies time and money while increasing revenue.
Mr. Corbell is also focusing on economic development. He and KIRO are partnering to promote the economic climate of Western Washington communities.
He’s writing a book tentatively entitled, “How to Watch Your Back in the Jungle – Avoiding Business Predators.”
Photo:
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