If Starbucks raised the price of a cappuccino, sales most likely would not be affected. If your attorney raised his or her hourly rate, would you switch law firms? If a company or service firm does not have pricing power, then its value is less than it should be. Here are a few ways to develop or increase pricing power:
producing a discernible branded product or service
innovating with...Read More
When one sells their house, the best deal is usually the highest price. When one decides to sell their business, there may be other factors to consider. Many buyers are similar to the “overlooked” buyer described below, serious and qualified; and most sales of businesses are win-win transactions. However, there are a few exceptions, and sellers should consider them carefully, balancing...Read More
A recent article in INC magazine titled”Street Smarts,” by Norm Brodsky (his column is worth the price of the magazine) addressed the subject of the title above. However, in the very first paragraph of the article, Mr. Brodsky stated, “Unfortunately, most of them have grossly inflated notions of what their companies are worth.” Mr. Brodsky is not one to mince words. Some of his examples...Read More
Does your business have an orphan product or service that is doing okay, but doesn’t seem to fit into your core business? Many companies, private equity groups and even some individual buyers are seeking product lines to augment existing ones, or even to build a business around. Here are just a few of the reasons why a company might want to divest itself of a product line or even a...Read More
Companies can be in trouble or headed for it for many reasons. However, most of them can be linked to one or more of the following:
• Lack of proper focus
• Poor management
• Poor financial controls
• Loss of key employee(s)
• Loss of important customer(s)/client(s)
• Not keeping up with technology
• Quality control or other operating issues
• Legal or governmental issues
• Target market...Read More
