The Psychology Behind Pricing in Business

Setting your prices for products or services you offer can be a daunting task. Companies such as tow truck annandale va have to undertake a lot of research, to settle on a pricing strategy that is best for customers. One of the most applied methods when it comes to pricing is psychological pricing. It involves a collection of methods that are structured around how consumers mentally perceive price points and values. It is a process that takes those trends and tendencies into account and poses a creative way to the playoff and exploits what is on the table.

Psychological Pricing

Psychological pricing is a method that rests on the idea that different kinds of prices prompt different psychological responses. You can see items offered at $1.99 instead of $2.00 because people perceive odd prices being slightly less than round numbers. However, it has to be noted that psychological pricing strategies are essentially complex. When you see a burger retailing at $0.99 at your local store, it triggers an instant psychological response. The same is the case when you see at your favorite cloth store, an offer that buys one and gets one free. There is a diverse array of psychological pricing strategies and here are some of them.


Bracketing is a psychological pricing strategy that is meant to sway buyers into choosing an option at a specific price. With this strategy, you normally have multiple products with different attributes that are available at varying price points. However, with all of these options, there is a single product you want most buyers to choose. To lead buyers into your preferred product, you offer three choices. A lower-quality option, your preferred median option, and a premium option. The key here is to offer your lower option at a bargain and a premium option at a higher price point. The logic is based on extreme aversion, which is the human tendency of avoiding extreme options in favor of intermediate ones.

Decoy Pricing

Decoy pricing is based on the fact that consumers will generally change their preferences between two options when given a third option that asymmetrically supports one of the initial two. Let’s dissect this together. Let’s assume there are two size options for buckets of popcorns. A small option goes for $3 while a large one goes for $7. This means a disappropriate amount of consumers will favor the small option because it appears to be the better deal. However, if you were to introduce a medium price for $6.5, then the $7 suddenly becomes the most favorable. Consumers will eventually choose the larger bucket because they think they are getting a substantial upgrade for just $0.50. In this case, the medium option will be considered a decoy.


The innumeracy strategy is often applied in retail. Let’s assume you are offered two deals. With one deal, it’s a buy one get one free, and another deal which has “two items 50 % off”. Which of these two deals sounds like a more viable option? If you are like most consumers, you would most probably choose the first, even if the two pose the same value. This trend forms the basis of psychological pricing strategy known as innumeracy. It is based on consumers’ lack of motivation, inclination, and ability to apply fundamental maths principles every day. 

Why You Need Customer Service Support Managers

Customer service and support employees commonly referred to as representatives and managers, support towing service and other businesses to ensure customers have a positive experience with a brand. They do this by answering customer inquiries, resolving problems, and addressing concerns so that customers can continue doing business with you. Let’s us have a deeper understanding of what these people do and the task they are mandated with on their desk.

Customer service and support managers

Customer service and support managers lead, coach, and train representatives. They provide their reps with goals and feedback to help them improve on their services and the support they provide their customers. They can step in and assist a representative in any given situation on a challenge they are facing with a customer. Managers also communicate with their representatives to ensure all expectations of the department are met.

Customer service and support departments are very critical for the success of any business. Since customer service and support managers dictate the way representatives communicate with and assist customers, it is very important to come up with a plan in place on how o train and develop quality managers for your company.

Customer Service Managers

Customer service managers work proactively by leading their representatives to solve customer problems before they even realize they exist. To do this, these managers organize their reps in teams based on the function to be handled. They determine the channels reps should be working on, be it email, phone, and chat, and work to create collaborations with other stakeholders. Customer service managers oversee the teams of customer service reps and will only have time to speak with the customer directly if the rep escalates an issue.

Customer Support Managers

Customer support managers work reactively by leading representatives to resolve customer inquiries via different methods and modes of communication such as phone, social media, email, and chat. Support representatives are typically the first point of contact your customer will have with your company’s customer service team. Customer support managers oversee teams of customer support reps and similar to customer service managers, they will typically only speak directly with the customer if a rep escalates an issue.

There are several sets of skills required to become a successful customer service manager. These managers oversee teams of representatives who respond to inquiries and resolve any issue a customer may have. They are good motivators and lead their teams of reps. In most times, they remain patient in all customer-facing scenarios and know company products in and out.

They are great communicators in that they must be able to communicate with their reps to ensure all customers are well taken care of in a professional manner that meets the company’s standard. They have a high level of patience. They are always patient while teaching their reps how to reach different resolutions for their customers.

They are good problem solvers. They have to find a way to resolve every customer issue and answer different inquiries every day in the most efficient manner.

Small Business Planning Tips to Your End Year

There is still time left before 2020 wraps up and planning is always key to getting everything right. If you are running a business such as, you know the importance of allocating resources to the right places and setting everything according to plan. 2020 might not have turned out according to the expectations of many. However, better days are always ahead, and here are some tips on how to plan for what’s ahead.

Work on your bookkeeping

You will not be able to make any sound financial or tax plan if you don’t have a good grasp of your bookkeeping. You need to have a solid understanding of what you have taken in and how much you are spending. If you are not a certified accountant, there are different apps you can use to automate bookkeeping recording of all your transactions. You need to have a good understanding of how your expenses are.

Revisit your pricing

Once you have an understanding of the financial health of your business, you need to evaluate the sustainability of your business, in terms of pricing. Many business owners make the mistake of undercharging their customers and you may set a price that compromises the sustainability of your business. The pricing you set should adequately compensate for your time, expenses, and all costs. The start of the year presents a wonderful tome to rework on your pricing strategy.

Do end-year tax planning

Many people normally think that taxes happen only once a year. As a result, they lose the chance to make any meaningful changes that could help planning their taxes. It is important to set up a meeting with an accountant before the year comes to a close. Their advice would be very important in getting things going in the right manner. All books of account should be properly balanced.

Reflect on your business structure

You might have been thinking of upgrading your business structure from a sole proprietorship to a limited liability company or a corporation. It is now the best time to implement the change. You will be in a position to restructure your taxes when you change your business structure. You only need to consult your legal team for paperwork.

Revamp your website

You may need to update your website and work on your social media profiles. Take time to work on the content that educates your customers on your products and adds value to their lives. Ensure the content on your website and social media pages are up to date. Dedicate enough time to rework and revamp your website with a new look.

When running a business, it will take a huge chunk on your time and other resources. You may find yourself with a lot of distractions on your side. You might even have other side businesses that eat into your time and profits. It is important to be fully dedicated and also close any inactive businesses taking away your time. Have a solid plan for your schedule and establish a routine.

Soft Skills You Need to Master as a Customer Sales

We are living in an era of cutthroat competition and failure to meat customer demands will render any company unprofitable. Tow trucks in Sanford have remarkably improved their customer service by hiring competent representatives, training their teams, and adopting modern customer service strategies to ensure the satisfaction of their customers. To leave your customers happy, you must ensure the team attending to your customers have the right combination of soft skills.

Soft skills refer to the ability to delight customers and not related to products or services a company offers. They are non-technical skills such as interpersonal communication, social awareness, personality traits, among others, which all contribute to customer experience. In most cases, soft skills are harder to train than technical skills. This is because they can’t be studied or read from a book.

If you want your customer representative team to deliver the best experience for your customers, ensure it has the following soft skills.

Managing ambiguity

Product knowledge normally acts as the biggest barrier and friction between a customer and a support representative. All support reps should be experts in products sold by their businesses and have answers to different questions customers might have. A customer rep can manage ambiguity by obtaining the necessary information needed and get all answers a customer might have.

Creative problem solving

Customers will normally have different types of problems and questions and it’s upon you as customer rep to get creative and address customer queries. To be a better problem solver, you need to challenge yourself to think differently. You should not always jump on the first solution, rather think about what would be the best solution for your customers.

Active listening

There is nothing more frustrating than a customer narrating their problem through a long story, only for the rep not to pay attention. Customers do not only want to be heard, but they also want to be understood. As a customer rep, you need to be an active listener whenever a customer is telling their problem. Active listening entails having a deep focus on the other person’s point of view.

Conversation starter

Conversation starting is normally overlooked, but it is a very important customer support skill. When conversing through the phone, it is important to ensure you can have a concrete conversation with your customer, start the conversations, and ask key questions that would keep the conversation going.

Empathy and Understanding

The above two skills form the fundamentals of customer service. They are also the most difficult to master and can be a major determining factor between customer satisfaction and failure. You need to show genuine empathy for your customers by fitting in their shoes and imagining the situation they are facing. A good way of expressing empathy is expressing what you know about the problem a customer is experiencing and more importantly, expressing how you would handle the situation.

Another important customer service skill is the ability of a sales rep to keep the positive language. A lot of times, you will be dealing with a frustrated customer, and it’s important to ensure you hold your head high and don’t take things personally. Keep a positive language no matter the language a customer expresses themselves in.

Top Leadership Qualities that make good managers

leadershipWhile running a washing services in Fredericksburg, I was faced with a lot of managerial decisions to make. Managers have the power to make or break an organization. Great managers inspire and encourage their employees to reach and deliver to their full potential, and help organizations surpass their goals. On the other hand, terrible dictators discourage their workers and this causes them to jump ship. A high number of employees who quit their jobs do so because they do not get along with their bosses.

Here are top skills that promote great leadership.


At any given moment a team halts believing that their leader is not communicating to them the truth in a transparent and honest manner, things start to come down crumbling. There is no need for workers to follow their boss if they feel the level of confidence in their leader is wanting due to honesty issues. In the business world, honesty is very important, and a value that every leader must aspire to have. When an organization is hiring for a manager, they should be able to look for a person who understands and appreciates the importance of openness and transparency.

Communication skills

A good managers must be able to communicate in a clear and precise manner. Great managers have great communication skills. They are able to get a team on a new page and have everyone work towards same goals and objectives. There should not be different interpretations of the same objectives. Great managers should be in a position to communicate verbally, but at the same time communicate precisely in written word.


decideIrrespective of the category or level of department that a manager works, all managers must make very tough decisions. To make a business more efficient, you have to look for a candidate who understands every aspect of the business, and is able to make tough decisions. Strong leaders are able to make strong decisions very quick, and this comes after doing due diligence. An average person makes about 35,000 decisions per day and managers make at least twice that number. When you select an indecisive manager, your company will very slow.


In order to have the support of your team, managers need to have confidence that the decisions they are making are the right ones. After a very tough decision has been reached, a manager should be in a position to convince his team that what has been done is the best and that the team needs to move forward. As time moves by, a business may suffer. It might be that you are sued or a new competitor enters the market. Another key thing that a great manager should have is a wider sense of responsibility. Great managers understand that they are in charge, and that they are responsible for the performance of everyone.

A great manager should also have a great sense of empathy. Look for a managerial candidate who has a great sense of empathy. Focus is also very important. Additionally, you have to be highly creative as creativity is the only thing that will set you apart from others.


Ways to Keep Your Team Motivated

motivationYou have put together a fantastic working team, so the next thing is to keep the team motivated. Keeping a team motivated is easier said than done. I had a team of customer service professionals at Platinum Access Limousines and I know what it takes to keep a team motivated. Many managers mistakenly think that money is the only or prime motivator for employees. That is not always the case. There are top things that keep employees motivated including respect, a sense of accomplishment and recognition.

If you are looking forward to keeping your team motivated, here are a couple of ways you can go about it?

Foster collaboration

You need to foster collaboration within your team. According to research, 39 percent of employees feel that their input is not appreciated. You need to encourage members of your team to participate fully as you invite their input and suggestions on how things should be done. You need to ask questions and listen to their answers. If possible, aspire to implement their solutions.

Avoid unnecessary meetings

You need to avoid useless meetings. Meetings can be such a big waste of time. An average professional wastes about 3.8 hours every week on unproductive meetings. As a manager, you need to create an agenda for your meetings and distribute the agenda in time. You need to invite the people who only matter so that they attend. Always start a meeting on time and have it end as quickly as possible.

Have clear goals

GOALSResearch shows that about 63 percent of employees wasted time at work because they were not aware of what’s before them that was a priority. As a manager, your core work is to ensure that you work with members of your team to set clear goals that need to be achieved. Once goals have been set, ensure that everyone knows exactly what goals need to be met and that they are working to meeting all the goals.

Avoid micromanaging

No one likes a boss who is constantly looking over their shoulder and observing every step in his or her work. Research also shows that a great number of employees who rather prefer to take up unpleasant roles, than working on tasks whereby their boss is constantly micromanaging. You need to provide your team with clear goals and give them an opportunity to decide on the best ways to achieve such goals.

Working Environment

You need to provide your team with a pleasant environment for them to work and feel at home. Everyone wants to work in an office that is clean and inviting to work in. You need to ensure that the office where your team is working in is pleasant. You also need to pay people what they are worth. The pay for your employees should ensure that it is in line with what others are getting compensated across the industry. You need to encourage happiness for your team. Keep an eye on all the things that make your team happy and work towards ensuring these issues are within your team.





How to Effectively Manage Teams

team workEven if you are not directly involved in the day to day management of teams, chances are pretty high that you shall be involved in a management position in the near future. The role of any manager is never a smooth sailing. At the beginning of your career, chances are that you are purely responsible for your work. It may not be your duty to inspire others at such a time. However, as time moves by, other responsibilities are added to you and you might find yourself in a management position.

For you to be an effective manager, you must aspire to be a leader. Leaders are people who are tasked with getting things done in the right way. They are involved in creating a compelling vision for the future and communicating that vision to other members of the team. As a manager, you must ensure all the company visions and goals are implemented. To effectively manage teams, there are key things you have to get right;


When it comes to managing teams effectively, delegation is very important. No matter your skill set, you will be limited to achieving a lot of things if you are working alone. When you have a team behind you, there is so much you will be able to achieve. A successful delegation happens when you match people with tasks that are much suited to them. You need to put together a team that understands each other, and delegate tasks to the team.


It is very important as a manager to motivate your team. The key duty of any good manager is to motivate their team. When it comes to motivation, there are different approaches you can go about it. You will also have to understand that different people have different needs when it comes to motivation – This means people are motivated differently. Some people are highly motivated while others will hardly perform without managerial input.

Developing a team

As a manager, you have a duty of developing your team. Teams are comprised of individuals who have different talents and abilities, and people who are at different levels in their career. You need to strike a balance to ensure that you have the right balance in your team. You need to develop a highly motivated and capable team that can help you achieve all your goals and objectives. Ensure that you give a regular feedback to members of your team for them to reflect and improve their performance.


How to Deal with Employee Conflict

employee conflictIn any business, there will be employees who will not get along from time to time. It can be because of differences in their personalities, opinions, lifestyles and other factors. When there is a discord in the workplace, it pretty affects everyone. It results in tension that makes the office environment untenable creating a very negative impact on business productivity.

However, on the other hand, conflict among employees may be a blessing. When handled constructively, such kind of conflict may lead to improvement in processes, healthy competition, enhanced creativity, and innovation. Here are some vital tips to apply when looking forward to handling conflict in the workplace.

Understand the nature of the conflict

In most cases, people tend to make assumptions about conflict especially if there are some rumors in place. When conflict occurs, you should not assume anything. Instead, try to figure out what is contributing to the feud. When you have identified the cause of conflict, next is to apply the workplace harassment prevention policies and guidelines. Understand all the issues contributing to hostilities between your employees and try to address them amicably.

Encourage employees to work it out

You do not have to step in at every instance employees are having a conflict – you can encourage them to find an amicable solution among themselves. Your aim is to help employees to be as self-sufficient as possible and such comes by instilling confidence among themselves that they can solve issues on their own. If you react to every worker’s conflict, you may at the end create a lot of unnecessary drama and escalate issues.

Use Best Judgement

reasonWhen it comes to addressing employees issues, always use the best judgment.  First, you need to determine if the situation is emotionally charged and then define the severity of the conflict. After you have assessed the situation, next is to talk to every employee to ensure they know you are aware of the situation. Encourage open communication that seeks to resolve the conflict.

Listen to both sides

When it is time for you to get involved, work diligently on the issues. First, start by dismissing any gossip that might be trending around the office as you are not supposed to buy into anything you hear. Deal with the two groups involved and don’t worry about other members not a party to the conflict. If you have to speak to each group separately, provide each with uninterrupted time to air their grievances before you can merge them together for a solution.

Consult your employee handbook

You can always review company policies as stipulated in your employee handbook. It may help in shedding light on the best way to deal with and approach employee problems. When you stick to policies as stipulated in the employee handbook, it means all parties have something they can refer to and provides a  practical way of remaining highly objective. Your employees respect and trust your decisions, so at any given time, you need to comes with a concrete solution that is very neutral and fair to both sides. For the decisions that you reach, ensure you write them up for future reference.

Common Workplace Challenges Impacting Performance

workersIn most cases, people spend nearly a third of their adult life at work. This means it never comes as a surprise workplace issues that contribute to low life and stress. It becomes increasingly difficult to have a workplace where everyone’s expectations, roles, and personalities produce a perfect blend without conflicts. Research has shown issues such as stress within the workplace is associated with a higher level of mental issues such as anxiety and depression.

The workplace can be defined as an environment with different personalities and conflicting individuals. It is a place defined with a lot of differences in terms of opinions and other affiliations. This means people working in a workplace are faced with a lot of challenges including the following;

Communication Issues

One of the biggest challenges employees face is navigating through different communication styles and channels. A lack of well-constituted and effective communication will always hinder the effectiveness of a team. It can also affect the level of trust among employees and the management in general. It is very important for organizations to have a clearly stipulated communication channel that employees can use to ensure that messages are well communicated.


Staying engaged and motivated is a big issue facing many employees today. Employees who are engaged are reported to be much more involved and excited. A higher level of engagement among staff members will have a higher impact on overall business innovation and productivity. On the other hand, the lack of engagement translates to lack of motivation.

Organization Bureaucracy

workplaceThe aspect of staff attitudes to higher authority plays a big role in the cohesion and cooperations staff have to their managers and supervisors. This is one of the main reasons these days we are seeing many disgruntled employees whose mood and morale affect the overall performance of a team. There needs to be a well-defined and clearly spelled balance between management procedures and staff automation.

Dealing with change

In any organization, change is always inevitable. Changes in an organization can come as a result of management, staff turnover, and change of clients among others. Many employees are faced with a lot of assumptions and unnecessary conclusions when they see change happening. If something around is changing, we should be equally ready to embrace the change or else we are left out.


It is very important to understand how to deal with negativity as it affects morale. There is always a reason for employees to have their morale go down. If the management doesn’t recognize this change in morale, there is pretty a high chance that it will lead to a negative attitude. Such kind of negativity may lead to frustrations and affect workplace performance.

Innovation, Creativity and New Skills

We all like to feel like we are accomplishing something be it working towards a goal or meeting a certain target. In any organization, there will be a particular group of employees who will be keen on acquiring new skills and advancing their careers. Those who do not keep up with this requirement are highly to miss out. Employees are also faced with the pressure of showing their continued worthiness through being creative.