Business Education

When Should Your Business Start Charging for a Free Service or Product?

There comes a time when a business must start to charge customers for something it’s provided for free in the past. As consumers, we are all familiar with this phenomenon. Perhaps a local restaurant favorite, that previously furnished patrons with bread-sticks or chips, free of charge. Then, suddenly on one particular visit, that item was no longer provided for free.

Why Businesses Start Charging for a Previously Free Product or Service

Of course, there are a myriad of reasons for a business to transition from offering something at no cost to charging its customers for it. It could be due to a variety of situations, such as a lack in supply, an overall change in industry practices, perhaps a transition from one owner to another, or a simple revenue loss calculation.

One of the secrets to business success is pricing your products properly. Price your products correctly and that can enhance how much you sell, creating the foundation for a business that will prosper. Get your pricing strategy wrong and you may create problems that your business may never be able to overcome. —Inc.com

Whatever the underlying reason for the change, it is usually out of necessity, rather than just a capricious decision on the part of the business. Perhaps your company is experiencing this and you’re wondering if it is feasible to charge for something you have previously provided at no cost to your customers. It’s a tough decision because you’re obviously worried that it might hurt your business, either in the short- or long-term.

How to Know When it’s Time to Begin Charging for a Service or Product Previously Provided at No Charge

Of course, there’s always a risk entailed in going from no cost to charging for something, be it a service or a product. So, let’s take a look at a few reasons when it is appropriate to start charging for a service or product you previously offered at no cost:

There’s a change in your cost. Let’s begin with one of the most obvious signs, a change in your expenses. You might have experienced an increase in how you acquire a product or need to keep up with the industry and start charging for a particular service you offered for free prior.
Other businesses already charged for the same thing. Here’s another fairly straightforward reason — companies in your line of business already charge for that certain product or service. Perhaps you did not in the past because it was a way to drive business. But now that you’re established, it’s time for customers to pay for it.
The industry itself is changing. Sometimes, market forces simply dictate a change in the way some companies do business. This might be one of those circumstances, when others in the same industry are starting to charge for something that they previously provided for free.
It’s simply time to make the transition. There are times when it’s necessary to take a loss-leader and transform it over to a revenue generator. It isn’t really all that uncommon for businesses to take a small loss on a product or service for some length of time, only to begin to monetize it at some point.

What other advice would you give about transitioning from taking a product or service from no cost to charging? Please share your thoughts and experiences by commenting!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

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4 Foolproof Ways to Write Better Emails

March 23, 2018 No Comments

If you’re in business, regardless of your role, you need to know how to write good email. Let’s face it, email isn’t going away any time soon. We use it on a daily basis. And, it’s a great way to communicate on-the-fly. It also helps make organization easier. This technology is an effective one — if you use it right. The trouble is, too many people just don’t write good email. But, don’t worry, it’s super-easy to improve by leaps-and-bounds. In Business, Electronic Communication is Key There’s no getting around the fact that email is a critical business tool. It can easily be used for more than just day-to-day communication. After all, like social media, it’s also a powerful marketing tool. That’s why there is a bazillion email newsletter templates floating out there in cyberspace. Make no mistake about it, communication is key in business and email should make it all the more easy. The ubiquity of e-mail means that everyone in business, from lords of finance to programmers who dream in code, needs to write intelligently. By using simple, clear, precise language, and following a few other basic writing rules, you can become a better communicator and improve the prospects for your career. —Forbes.com The problem is, far too many people just don’t use it in the most practical manner. Now, that doesn’t mean every single message needs to actually be a work of art. But, it does mean, the more you make a habit of some good practices, the better you’ll become over time. 4 Foolproof Ways to Write Better Emails We all like the notion of “inbox zero.” That place where we’ve gone through every message and taken the appropriate actions. But, with so much, it’s often difficult to get to every single message. And, it’s even more difficult to write in a way that makes the most out of the medium. So, here are four foolproof ways to write better emails: Keep it short. There’s no need to go into painstaking detail. The longer the message, the less effective it becomes. You need to deliver your message in a quick manner so it doesn’t waste the recipient’s precious time. Always be direct. Limit the adverbs and adjectives. Keep them to a minimum because the more “flowery” the wording, the less clear (or boring) it is to the reader. Now, you can explain but be direct. Army service members call this strategy “BLUF”, which simply means “bottom-line, upfront.” Reread your message. Never hit “Send” without re-reading your message — at least twice. Don’t rush through it. Take advantage of the spell check and ask yourself if it gets your meaning across. Add the recipient(s) last. When you compose a message, be sure to leave the recipient field blank. And, don’t add his or her email address until you’ve written it entirely, and reviewed it twice. This way, you’ll avoid sending it out accidentally with errors (or without being clear). What other suggestions do you have for writing good email messages? Please, share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

New to Hiring, Here’s How to Spot Resume Red Flags

April 8, 2021 No Comments

It’s often said the first hire is the hardest, and that’s inescapably true for several reasons. Foremost, it’s because when you hire an employee, you’re hiring someone to represent your business. Which is to say, you’re entrusting them with your company’s entire reputation. Then, there’s the matter of consistency, even if that person has the competence. In other words, being able to do the job well over and over again. But, that’s not all, your first hire must be cost effective, helping your business to earn more than it did before. So, it’s no wonder business owners procrastinate as long as they can, putting off their first hire. What Resumes Are (and Aren’t) Of course, there’s the conundrum of where to begin and finding a good fit. This is where the resume comes into play, although you may not be very familiar with qualifying a person’s capabilities from a sheet or couple of sheets of paper. On average, hiring professionals spend just 7 seconds looking over each resume. That’s not a lot of time, and especially seems short if you’re doing it for the first time. Do you know who you are hiring? You need to review each resume, cover letter and job application that you receive with care. You want to ensure that the candidates you consider hiring are who they say they are and that their credentials are valid and match your needs. —The Balance Careers The good news is, you can get a lot out of just about any resume, if you know what to look for. Obviously, you have to start with an understanding of what a resume is and what it isn’t. A resume is simply a summary of a person’s qualifications and their competencies, along with their work history. That’s about it, what a resume isn’t, is a tell-all that will reveal all a person’s strengths and weaknesses. How to Spot Resume Red Flags The simple fact of the matter is that a resume only provides the information the applicant furnishes. Meaning, it will only tell you what the applicant wants you to know. However, this doesn’t mean it can’t give you some very key clues that you can use to your advantage. Here are the biggest red flags resumes can reveal: Inexplicable or unexplained gaps. A resume with big gaps, particularly between positions, is one that tells you a whole lot. Someone who has large gaps between jobs is likely an applicant you’d probably be better off without. Rock star qualifications. Conversely, if an applicant’s resume is packed with too much good news, it’s probably too good to be true. A resume with a cornucopia of qualifications is likely full of exaggerations, embellishments, half-truths, and more misleading information. tOO mAny TyPoes. Poor spelling, bad grammar, sloppy punctuation spell b-a-d n-e-w-s. If someone doesn’t pay close attention to the way they present his or her self on paper, he or she isn’t really interested impressing potential employers. Of course, these aren’t the only red flags you might find on a resume. Applicants who send their resumes from current employers’ email systems are telegraphing they’re not respectful of others’ time and resources. Unusual employment histories are also a red flag. People who hop from one industry to another do so for reasons that should concern you. What other red flags do you look for on resumes? Please take a quick moment to share your experiences and thoughts. After all, your perspective just might help someone else out! Interested in learning more about business? Then just visit Waters Business Consulting Group.

I can’t Afford to give My Employees Christmas Bonuses this Year, What can I Do Instead?

December 10, 2021 No Comments

This year, a good number of businesses will continue to face the very unenviable position of not being able to afford employees’ holiday bonuses. For a sizable percentage of companies, it became an inescapable reality last year, obviously, due to the large-scale shutdowns across the country and overseas. While many businesses have recovered and regained a sense of normalcy, a significant portion still struggle. This means having to make hard choices when it comes to expenses that are not part of the business’s day-to-day operations. Fortunately, there are some alternatives to giving employees cash. Turn a Negative Situation into a Positive One When the economy or an industry takes a downturn, most entrepreneurs will take a good hard look at their books to determine exactly where they stand. Some make the mistake of cutting back too deeply, becoming too lean to fully operate, and only prolonging a bad set of circumstances. However, others embrace it as an opportunity to eliminate redundancies, reduce extra expenses, and put their resources where they most matter. A holiday bonus is a traditional gift given to employees by employers each year as a big ‘thank you.’ Many managers and business owners want to give their hard-working employees a bonus at the end of the year. The unfortunate truth is that many cannot afford it in today’s economy. As a result, many companies have had to get creative by offering their employees something enticing that is not a cash bonus. —Optimum Employer Solutions The latter strategy is obviously more effective because it makes the company more efficient. This type of audit should be done regularly since it’s so very easy to become blissfully ignorant of what’s actually happening with the business’ finances. Company owners who enjoy a nice regular profit line are typically the ones blindsided most when things change and go in the wrong direction. Regardless, if you really can’t afford holiday bonuses this year, be honest and upfront with your team members. This way, they will understand the gravity of the situation and be grateful for whatever you decide on as a substitute. Employee Bonus Alternatives Before you panic, be sure to know the exact numbers. The situation might not be as dire as you think. Although, if it isn’t truly feasible to give your employees holiday bonuses this year, here are some great alternatives: Extra paid time off. What’s wonderful about this alternative is that employees will appreciate this just as much as bonuses. People like extra time off when they don’t have to forfeit anything and this will not cost the business anything directly out of pocket. Incremental pay raises. Another option is to schedule incremental pay raises for every quarter over the next year. If possible, start this in the immediate future and your employees will feel appreciated and valued. Better benefit packages. Yet another alternative to giving out bonuses is to give your employees better benefits which they can always use. Look into better health insurance, dental insurance, and other benefits What other employee bonus alternatives would you suggest? Please take a moment to share your thoughts and experiences so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.

When Should Your Business Start Charging for a Free Service or Product?

Why Businesses Start Charging for a Previously Free Product or Service

How to Know When it’s Time to Begin Charging for a Service or Product Previously Provided at No Charge

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Related Posts

4 Foolproof Ways to Write Better Emails

New to Hiring, Here’s How to Spot Resume Red Flags

I can’t Afford to give My Employees Christmas Bonuses this Year, What can I Do Instead?

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