How to Improve Decision Making in Business?

Decision-making plays a critical role for businesses to avoid risks and improve the bottom line. According to Alan Safahi, a professional entrepreneur and San Francisco-based startup founder, decision-making involves identifying an issue, gathering data, and evaluating alternative resolutions.

Safahi Orinda argues that a step-by-step decision-making process allows for thoughtful actions, thanks to the organization of the relevant information. When you follow this approach, it increases the likelihood of choosing the most appropriate alternatives. Here is how you can improve decision-making in business. Read on!

Collect Relevant Information

Gather relevant information before making a business decision. Ask yourself, “what information do I need?’ Find the be

st sources of data and determine ways to get it. Remember, this process involves internal and external work.

For example, you will seek internal information through a self-assessment process. External sources of information are the internet, book, research papers, reports, etc. Collecting pertinent data is essential because it helps you make an informed decision.

Moreover, look at the company’s goals and prioritize. Remember, any decision you make for your business starts with a goal or objective. Next, find and present pertinent data, and use software applications to analyze the data.

Next, draw conclusions from the generated insights, plan your strategy, and measure the efficacy of the primary and alternative solutions. If you can’t find or collect relevant data, make sure you repeat the process and focus on additional information sources.

Identify the Alternatives

As you gather data, you need to identify potential paths of action or determine alternatives. According to Alan Safahi Orinda, use your immigration and additional information sources to establish new alternatives. Likewise, list all possible alternatives and choose the one that best fits your business needs.

Evaluate the Evidence

Draw on your collected data and emotions to analyze which alternative you want to carry out. Evaluate whether the need identified earlier would meet or resolve by using your chosen option.

Favor a few alternative solutions when going through the challenging internal process. Select those with a higher potential for reaching your business goal. Likewise, place the alternatives in a priority list or order while focusing on the value system of your business.

Take Action

Once you have measured the evidence, you are finally ready to choose the alternative that aligns with your business. You can also select a combination of different alternative solutions. The purpose is to equip yourself with enough information to take positive action by implementing the chosen alternative for a business decision.

Review Your Decision

The final step is to review your decision. It involves considering the result of your decision and assessing whether it has resolved the identified or determined decision or problem.

If the decision does not meet the identified need, you can repeat the process and make a new decision. However, Safahi says it requires collecting detailed information or exploring additional alternatives.

Safahi says evaluating the significance of the decision, reviewing its benefits, analyzing the cost of reversing your decision, and determining what’s best for your business. That way, you can take appropriate actions and improve your business’s bottom line.

Originally Posted: https://alansafahicontracosta.com/2022/06/29/how-to-improve-decision-making-in-business/

5 Growth Industries for Entrepreneurs

According to Alan Safahi, an entrepreneur who runs a profitable company in San Francisco, starting your own business gives you the freedom to financial stability and create enough wealth to live a happy life.

If you want to become your own boss, you need to find the industries on the rise. Today’s article will list the five growth industries for entrepreneurs to invest in and achieve their goals. Read on!

1. Green Startups

Environmentally friendly or green investments can provide substantial profits because the world makes significant efforts to mitigate the harmful effects of climate change. According to the Oxford University research study, sustainable businesses can lower operating costs and generate higher profits with improved share prices.

Therefore, green startups are an excellent opportunity for entrepreneurs to focus on and start their own businesses. In addition, companies that focus on eco-friendliness have caught the venture capitalists’ attention, meaning you can make a lot of money in this industry. As an owner of an eco-conscious company, you can leverage generous tax incentives and generate more income.

2. Drones

Drones have become popular in recent years, and the industry is booming. According to Brand Essence Market Research, the drone industry will see a growth of 12.3% every year, and by 2027, it will reach a whopping $41 billion.

So, whether you invest in drone stocks, start a drone manufacturing company, or develop software solutions for unmanned aircraft, you can generate a lot of money. Drones have applications in agriculture, real estate, construction, telecommunication, defense, photography, insurance, tourism, and many other industries.

3. Virtual Reality

Virtual reality and augmented reality have seen massive and rapid growth worldwide. According to Alan Safahi Orinda, the VR industry will dominate the various sectors, reaching a staggering $766 billion by 2025. The growth rate of virtual reality will reach 73.7% by 2025.

In addition to gaming, virtual reality has dominated the entertainment, education, architecture, automotive, healthcare, digital marketing, occupational safety, and eCommerce industries. Entrepreneurs have endless opportunities to start a business in the virtual reality industry.

4. Biotechnology

Although biotechnology is a relatively new sector, it has massive potential for streamlining the biological and medical industries. For instance, biotechnology and bioinformatics are the critical drivers behind gene therapy, personalized medicine, genetically modified crops, bioremediation, energy production, diagnostics, therapeutics, and waste treatment.

Recent studies show that the current CAGR rate of biotechnology is 15.83%. The industry will reach a whopping $2,438 billion by 2028. So, entrepreneurs have plenty of opportunities to start a biotech business. However, Safahi says that entrepreneurs seeking to achieve their goals in this industry must have a vision and understanding of the opportunities and challenges.

5. Cloud Computing

Businesses spend millions of dollars safeguarding their data, creating backups, and securing their networks via cloud computing. So, Safahi says establishing a cloud computing company and providing SaaS services has a lot of earning potential.

Research shows that the worldwide cloud computing market experienced a growth of 445 billion in 2021, and this will reach $947 billion by 2025 with a CAGR rate of 16.3%. So, it is a golden opportunity for entrepreneurs to develop cloud computing platforms or apps and market their business to generate higher profits.

Originally Posted: https://safahi.com/5-growth-industries-for-entrepreneurs-4e6d10e1fe5b

Technology Tips for Small Business

All types of businesses, including small companies, face their unique challenges. Keeping up with the rapid pace of advanced technologies is one of the most significant challenges for small businesses.

According to Alan Safahi Orinda, an experienced and skilled entrepreneur in San Francisco, businesses who learn to maintain technological tools and align their operations with trends stay competitive in the market. Here are four technology tips for small businesses. Read on

1. Invest in Network Security

Network security has become critical for small businesses because hackers and cybercriminals are more active and can gain access to your confidential data, including customer and financial information.

Once hackers get into the system, they can steal your customers’ data and business financial information. Therefore, Alan Safahi recommends investing in network security tools to protect your data, including software and firewall solutions. Follow a proactive approach and look for trustable cybersecurity resources.

2. Upgrade Your Equipment and Tools

Most small businesses find it challenging to uncover an issue, fix it, and move forward. However, technology can help you automate the process and save time and resources. According to Alan Safahi, threats evolve, and new ones arise daily.

Therefore, it is crucial to upgrade your hardware equipment and software tools. If you have obsolete tools, you will experience complications. For instance, what you incorporated a year ago can lead to higher risks, putting your company in jeopardy.

So, Safahi recommends continually assessing the latest technology and evaluating it to implement the best equipment and tools. The purpose is to select and incorporate technologies that align with your business operations.

3. Develop a Data Backup Plan

Data is the heart and lifeblood of your small business, meaning you have to make substantial efforts to protect it at all times. Backing up your data can save your business from breaches and cyberattacks.

In addition, backup systems apply to the internet that ensures customers’ connectivity, orders, credit card processing, bank accounts, etc. When you have an obsolete system, you can lose valuable data. Therefore, consider cloud backup plans to safeguard your business from potential threats.

4. Establish a Training Program for Your Employees

Developing a training program for your employees is the best way to make the most out of the technology tools. Alan Safahi considers this an essential investment. Although technology is expensive, training your employees will increase productivity, increase sales, safeguard the company’s values, and generate higher returns on investments.

So, if you want to make your company more competitive, enhance communication and collaboration between employees, increase security, bring efficiency, achieve compliance, and support your business operations, implement training programs for employees every month, three months, or at least twice a year. Safahi suggests training your employees for efficient use of:

• Cloud storage
• Accounting tools
• Note-taking software
• Email marketing tools
• Social media management
• Video conferencing apps
• Project management software

Originally Posted: https://alansafahicontracosta.wordpress.com/2022/06/23/technology-tips-for-small-business/

How to Improve Your Marketing ROI

Calculating your marketing ROI is crucial because it provides valuable insights and improves your marketing strategy. It defines your goals and considers real numbers to measure the success of your marketing campaign.

The purpose is to empower yourself with data and optimize your marketing campaign. Here is how you can improve your marketing ROI. The following tips are based on Alan Safahi’s insights, a San Francisco-based entrepreneur and successful startup owner. Read on!

Choose the Right List

Choosing or creating the correct customer list is critical because successful businesses serve a more specific market. According to Alan Safahi Orinda, an effective marketing campaign targets customers interested in your product or service.

Recent research shows that 40% of direct mail success is due to the correct list of prospects. Therefore, you can reach your target audience and generate high-quality leads when you have the right list. Thus, you can increase your ROIs.

Timing is Critical

People don’t purchase groceries or veggies/fruits months before cooking. So, there is no need to create a list of prospects before your marketing campaign is ready. Information or data can spoil over time.

Studies show that prospects list go obsolete at a 15% rate or more every year. Therefore, timing is critical when launching your marketing campaign. Otherwise, you can’t improve your marketing ROIs.

Define Your Campaign Goals

Before launching your marketing campaign, ask yourself, “What will I achieve with this campaign?” According to Alan Safahi, different businesses have different marketing goals. For instance, some develop a strategy to establish their brand identity or improve their online presence.

On the other hand, other businesses aim to generate quality leads and increase sales. Therefore, Safahi Orinda recommends determining your marketing goals before launching the campaign. The purpose is to achieve your goal with a clear objective. Without a defined plan, you can’t determine success or measure your marketing campaign’s ROI.

Focus on Call to Action

A successful marketing campaign generates excitement among your potential and existing customers. The primary goal is to elicit responses. Not including a call to action is one of the most significant mistakes entrepreneurs and small businesses commit when measuring marketing ROIs. Alan Safahi recommends programs like:

• Free consultations
• Discounts
• Promotional products
• Buy-one-get-one-free offers

Use Multiple Communication Tools

Many consumers prefer email communication or social media engagement in today’s digital world instead of phone calls. However, Safahi recommends incorporating the traditional and contemporary communication channels to receive better and faster response rates. Eliminating one method will reduce the response rate by 25%. Safahi suggests:

• Social media advertising
• Search engine marketing
• Direct marketing
• Sales promotion
• Public relations
• Phone calls
• SMSs
• Email communication
• Digital forums

Track Results and Calculate ROI

Once you have launched a campaign, it is crucial to perform A/B split tests over time and monitor the number of consumers who respond to your marketing campaign. It would help if you analyzed the common characteristics of your target audience.

The purpose is to collect data, analyze it, and generate valuable insights to reduce workload and increase your reach for future marketing campaigns. You can calculate the ROI manually or use software tools to save time.

Moreover, measuring marketing ROI requires you to take your product’s sales growth, subtract the total cost of marketing or advertising, and divide the number by the marketing cost. For example, If you have made $2,000 in sales and the marketing campaign cost was $200, the ROI is 900%. The simple formula is:

$2,000-$200 = $1,800

$1,800 / $200 = 900%

Originally Posted: https://safahi.com/how-to-improve-your-marketing-roi-59719a964e6f

How to Sell More to New Customers?

The Covid-19 pandemic has created an uncertain situation for businesses of all types, and entrepreneurs face a situation where numerous external factors impact sales. As a result, the Covid-19 pandemic, supply chain disruption, and economic crises have caused the viability of businesses at stake. 

According to Alan Safahi, it is crucial to develop a solid strategy, take immediate action, and reach new customers to recover business activity. Although selling to and retaining existing customers is vital, you must focus on gaining new customers to streamline your business. Read on!

Develop New Customer Profiles

Alan Safahi Orinda, a San Francisco-based business owner, has years of experience dealing with uncertain situations and selling to new customers. Safahi recommends developing numerous narrow customer profiles and including factors like:

• Paying on time 
• Ordering regularly 
• Purchasing more 
• Referring more customers 

In addition, match your promotional strategy with your new customer profile and perform thorough research to collect data, analyze it, and generate new insights. Knowing the needs and wants of customers can help you attract their attention.

Identify New Markets

According to Safahi, a successful entrepreneur, look for innovative distribution channels to scale your customer base. For example, you can look for third-party selling platforms like e-Bay and Amazon to increase sales. 

Besides, make your website more intuitive, user-friendly, and customer oriented. Review your product range to determine the ones you can sell online. The purpose is to avoid limiting your business geographically or from 9:00 AM to 5:00 PM.

Franchising is Key 

A company that operates profitability in one city should expand its business operations to another, says Alan Safahi. Determine whether your business model offers new customers efficiently and quickly. 

Do you have competitive products that can resolve customers’ problems? Do your products have increased demand? If yes, focus on franchising your business because it has the highest success rates and lower risks of failure. 

Alan Safahi recommends taking your time to prepare your team, evaluate franchising opportunities, choose a reliable franchisor, review and sign a conversion agreement, and finance it to achieve your goals.

Set Up A Customer Loyalty Program

According to Alan Safahi, reward the existing customers with incentives to improve word-of-mouth marketing and attract new customers. Free perks, point cards, and promotional products are evidence-based methods to increase customer engagement, draw attention, and enhance brand loyalty. 

Implement a loyalty program and launch promotional products to see a rise in new customers. These customers will visit your business frequently, spend more, and turn your company into a profitable business. Once consumers talk about your program, you will draw new ones away from the competition. 

Moreover, spread the word about your promotional or reward program through various channels and platforms, such as social media, email, newsletters, and employees. Encourage customers to try your new program. You can gift consumers some purchase credits or starter points or offer an additional discount on the next purchase.

Originally Posted: https://alansafahicontracosta.wordpress.com/2022/06/17/how-to-sell-more-to-new-customers/

Marketing for Small Businesses in 2022

Marketing is an integral part of your overall business strategy. According to Alan Safahi Orinda, a successful entrepreneur and owner of a growing startup in San Francisco, effective marketing is essential to small business survival and achieving its full potential.

Although most small business owners think of marketing as placing ads, it is broader than advertising. Safahi says marketing involves strategies to communicate with customers, present a message to the target audience, understand consumers’ needs and wants, and influence perceptions.

Why is Marketing Important?

Businesses of all types and sizes need customers. Marketing is the process of attracting customers, engaging them via valuable content, improving your brand loyalty, increasing sales, and generating higher returns on investments.

It involves various aspects of your company and is fundamental to retaining existing customers and reaching new ones. Safahi says understanding the ins and outs of marketing can you develop a solid strategy, reach your target audience, and increase sales.

Where Can You Market Your Small Business?

In addition to the typical advertising or marketing methods, such as newspapers, TVs, radios, magazines, and business journals, look for effective techniques within your budget to achieve your goals.

If you have a small business, you must think outside the conventional methods and leverage creative marketing techniques. Safahi says successful marketing is not about how much you spend on advertising.

It requires developing targeted strategies that appeal to customers, generate their interest, and engage them. Safahi has created a long list of marketing techniques, including referral programs, brochures, direct mail, newsletters, blogs, Twitter, billboards, TV, refrigerator magnets, calendars, printed pens, signage on the storefront, e-newsletters, local magazines, and sponsorships.

Alan Safahi recommends combining the traditional and digital marketing platforms to reach your target audience. For instance, leverage the power of promotional activities, community events, word of mouth, trade shows, newspapers, business card placement, social media, local SEO, YouTube, and Pinterest.

Is It Necessary To Create A Marketing Plan?

A solid marketing strategy does not happen by accident. It requires careful planning, preparation, and analysis. According to Alan Safahi, developing a targeted, coordinated, and systematic marketing approach is essential.

Although you can create an informal or formal marketing plan, Safahi recommends a formal plan can help you communicate with stakeholders, including potential lenders and employees.

On the other hand, a less formal plan has numerous loopholes, preventing you from reaching your target audience and spreading your brand message. Therefore, create a formal program with a written timeline to achieve S.M.A.R.T goals and track your advertising or promotional activities.

Remember, a formal marketing plan goes hand in hand with your business goals and financial resources. For instance, when you lack funds or budget, you may not purchase an ad on TV. At the same time, TV ads are ineffective if your target audience does not watch television or spends less time on it.

Therefore, Alan Safahi suggests creating a marketing plan to know the preferred marketing channels of your target audience. Thus, you can tailor your strategy toward your customers, financial resources, and business objectives. Lastly, if you don’t have enough time to create a marketing plan, hire a professional marketer or service to do the job adequately.

Originally Posted: https://safahi.com/marketing-for-small-businesses-in-2022-173ba98e04c2

An Essential Guide to Budgeting for Small Business

According to Alan Safahi, an experienced and skilled entrepreneur, small businesses deal with emergencies that create additional expenses, delays, and lost profits without a strategic budget or plan. 

Safahi Orinda, a successful startup founder, says small business budgeting requires careful planning and preparation. However, it would help if you did not complicate it. In other words, it must not be nerve-wracking and time-consuming. 

When you use advanced cutting-edge tools and best practices given below, you can take control and manage your budget planning. The purpose is to make accurate financial decisions and improve your business. Read on! 

Review Your Revenue

The first step is to identify your income sources that feed your business activities when building a budget. Once you have collected, analyzed, and detailed your income sources, you can tote them to calculate and analyze your monthly income. According to Safahi, develop your budget according to your company’s revenues instead of focusing on the profits.

Deduct Fixed Costs

Fixed costs are recurring and sustain your business operations. However, there is no set time or duration for a fixed cost because it can recur daily, bi-weekly, weekly, bi-monthly, monthly, quarterly, and annually. 

Collect relevant data, including information about your company’s revenues, to streamline the entire process. Generally, small businesses have fixed costs like taxes, rent, insurance, supplies, repayment of loans, and asset depreciation. 

Measure Variable Costs

In addition to deducting fixed costs, Safahi recommends measuring valuable costs because they contribute to your business’s ongoing operations. However, they also include discretionary expenses that boost your business’s visibility, growth, and profitability.

Your business may incur variable costs like utilities, office supplies, equipment repair or replacement, and marketing expenses. Therefore, Safahi Orinda recommends understanding, tracking, and analyzing variable costs to plan for additional enhancement to your company’s budget and adjust your cashflows.

Create a Contingency Fund

The business world is unpredictable and risky. Not having a contingency plan can put your company at risk and on the brink of collapse. According to Alan Safahi Orinda, a contingency plan can protect your business in times of financial crisis. 

Likewise, having a contingency plan works well with financial backups, including small business loans and additional infusions from investors. You can access the emergency fund immediately and protect yourself from additional debts.

Create Your P&L Statement

Create a profit and loss (P&L) statement based on the financial information or data. The purpose is to create a formal financial report and document your expenses, revenues, and profits/losses within a given period. 

Make sure you don’t create an overly complex profit and loss statement and follow the easy steps, such as adding up your revenue and expenses for the month and subtracting your costs from the total revenue. Alan Safahi says that when you have a positive result, you have made a profit. 

On the other hand, a negative figure means you have made a loss. Anyway, a profit and loss statement is an integral component of your budgeting plan, streamlining the financial side of your business.

Originally Posted: https://alansafahiorindaca.wordpress.com/2022/06/10/an-essential-guide-to-budgeting-for-small-business/

Best Tips for Startups and Innovators

Most entrepreneurs, startup companies, and innovators find it challenging to pioneer a new idea, especially in the presence of established businesses. According to Alan Safahi Orinda, an knowledgeable entrepreneur and founder of a profitable startup company in San Francisco, entrepreneurship is full of opportunities. It is all about how you play the game. 

Safahi Orinda says agile startups are valid contenders against giant companies and competitive industries. Therefore, it is crucial to wake up to the power of innovation and use your ideas to build a successful startup. Today’s article will give you the most practical tips to achieve your goals. Read on! 

A skilled entrepreneur or startup leader can assess a problem from different perspectives and create unique solutions. However, this is impossible without defining your mission. 

According to Safahi, following your business’s end goal gives you direction, a reachable market, and essential steps to achieving your goals. Make sure your business vision supports your vision and communicates directly to stakeholders, vendors, customers, and employees. 

Think Agile 

The best thing about startups is that they can act with freedom and more responsibly. On the other hand, a giant company is less nimble with a connected target audience and established product. 

When you think agile, you will quickly start new projects, develop new products, create efficient road maps, and contend with more innovation. Therefore, an agile approach is an appropriate way to improve your business. 

Make Your Product Innovative 

Although people recognize startups for innovation, this works if your product has the right audience and is much better than the standards defined by the industry. According to Alan Safahi, understanding the market and the demand is crucial to making your product innovative. 

In addition, you must know the current offering and create a product that adds more value to customers than your competitors’ products. So, connect your audience and ensure your concept aligns with their needs. 

Invest in a Thorough Business Plan 

Planning is an integral part of business and crucial for making things happen. It allows you to put things in perspective and get them right the first time around. However, if you don’t have enough knowledge to create a solid business plan, you can seek help from professionals. 

Remember, effective planning is directly proportional to achieving the highest return on investment. The operating tool helps you manage your day-to-day business operations, identify potential issues, and incorporate appropriate solutions. 

Focus on Your Business Structure 

Alan Safahi says it is easier to get the correct structure in a startup environment. However, Safahi recommends reversing the existing structure because it can result in additional expenses and disrupt your business, including wasting time and resources.  Therefore, crucial factors to consider when deciding on a structure are control, ownership, asset/wealth protection, taxation, exit options, and succession strategies. The more streamlined your business structure is, the lower the risk you will experience. As a result, you will have an improved overall business bottom line.

Originally Posted: https://alansafahicontracosta.wordpress.com/2022/06/07/best-tips-for-startups-and-innovators/

How to Pitch Your Ideas to Investors

Having a solid business idea encourages you to invest appropriately and create sales and profit. The successful implementation of a business idea allows you to invest in more products and services, streamlining your business processes and putting it in the right direction.

On the other hand, if you have a terrible business idea, you will have a higher likelihood of facing the competition. According to Alan Safahi, a professional entrepreneur and founder of a San Francisco-based startup company, entrepreneurs must know the correct pitching of their business.

Even if you don’t plan to pursue funding, a solid elevator pitch enables you to understand your business inside and out. Safahi says this will help you seek out investment in the future. Here are a few ways entrepreneurs can effectively pitch their business ideas. Read on!

Learn About Investors

Alan Safahi Orinda emphasizes the significance of recognizing and learning about investors. Keep in mind that investors do not make mistakes with their money or investments and look for professional, organized, and experienced team leadership qualities and high-performance capabilities.

Most investors research the business background and seek industry knowledge before accepting proposals. Therefore, Safahi recommends thinking about the questions investors might ask because this helps you identify the primary linkages that need thorough explanation. For instance, such questions include:

• Do the financial results align with your strategic priorities?
• Do you have a solid plan to mitigate risks?
• Do your operational key performance indicators align with your financial performance?
• What are your long-term goals? How will you achieve these goals?

Be Honest and Brief

Investors have a habit of asking many questions. Therefore, Safahi says, it is crucial to answering your questions honestly. Avoid covering up the uncertainty by overpromising an investor. Likewise, you must not provide false information about your business.

Investors have the experience to recognize your company’s limits. Therefore, you must look at the realistic state of affairs. Otherwise, you may not convince the investor to interpret the results. In addition, investors want to know why and how your company will generate a return and provide comfort and safety to their capital.

According to Alan Safahi , using accounting software to export the income and statement and balance sheet is not enough. You must understand how graphs, charts, and reports work to ensure the stakeholders better interpret your business financials and make the right conclusions.

State Your Business Goals

Business goals are an integral part of your overall strategy. Not only do business goals provide the essential milestones to measure your business success, but they also set your company’s direction. Stating your business goals plays a critical role in effectively pitching your idea.

However, you must think about what is your company trying to achieve with the investor? The success rate is higher when you anticipate and address the investor’s questions upfront. That way, you can convince the external stakeholder to invest in your startup.

Originally Posted: https://safahi.com/how-to-pitch-your-ideas-to-investors-c3bd5749183d

What are Common Mistakes in Pricing?

A price is a number given to a product or service for many entrepreneurs and companies. According to Alan Safahi Orinda, a successful businessman and experienced entrepreneur, costs, market conditions, and assumptions are the primary factors entrepreneurs use to set product prices. 

Pricing is essential because it defines the product’s value and worth and motivates potential and existing customers to make informed decisions. It lets your customers know whether they should buy your product or service. 

Alan Safahi Orinda argues that pricing is the process entrepreneurs and businesses use to set a product or service price. However, most entrepreneurs find it challenging to maintain a sophisticated pricing strategy. The reason is the lack of knowledge and unfamiliarity with the market conditions. 

In fact, Safahi says entrepreneurs rely more on their gut feelings when setting product or service prices. Today’s article will discuss the most common mistakes entrepreneurs make in pricing. Read on! 

Not Developing a Customer-Oriented Strategy 

Many entrepreneurs think that customers care about the costs of a product or service. However, this is a misconception. Alan Safahi says consumers look for solutions to their problems and pay for products or services in exchange for the results, outcomes, or benefits. 

The purpose is to receive the value for their money. Therefore, when you don’t focus on your strategy on your customers and overcharge or undercharge consumers, you leave value on the table or lose the customer. Safahi recommends developing a pricing strategy that aligns with your company’s value and benefits your customers. 

Setting the Same Price Across Geographic Locations 

According to Safahi Orinda, customers have different needs and preferences, so setting the same price across geographical locations is the most significant mistake entrepreneurs or businesses commit. Prices vary depending on the competitors’ landscape and market dynamics. 

When you charge the same price, you sabotage the value by undercharging some customers and overcharging others. Some customers look for discounts while others can pay a higher price for your product. Therefore, analyze the market conditions, and conduct surveys in different locations to know the customers’ preferences. 

The purpose is to generate valuable insights and develop a pricing strategy according to the findings of your research and insights. In addition, you must segment your customers based on their preferences to generate higher revenues and maintain a competitive advantage in the market. 

Pricing Strategy Does not Align with Company’s Objectives 

According to Alan safahi Orinda CA, a successful entrepreneur or business owner does not make decisions at the last minute. In fact, they perform thorough research, use different software applications, and analyze valuable data to make informed decisions. 

In addition, successful businesses consider their company’s marketing and corporate objectives when setting prices for their products or services. Strategic or dynamic pricing supports your company, allowing you to achieve your marketing and corporate goals. 

You must consider customers’ needs and preferences, analyze competitors’ strategies, analyze your product and how it creates value for consumers, and focus on internal capabilities, including costs and profitability. 

Not Changing the Prices Based on the Market 

Many entrepreneurs do not change their product prices based on the market conditions because they think about how their customers will react to the decision. However, when you ignore market dynamics, skip customers’ needs, and experience increasing costs, you suffer the consequences of low profitability. 

Therefore, Alan Safahi recommends following a proactive and balanced approach to setting product or service prices. Similarly, consider factors like customer expectations and purchasing behavior when setting the price.

Originally Posted: https://alansafahicontracosta.wordpress.com/2022/06/01/what-are-common-mistakes-in-pricing/