LESSON FOR FREQUENT FLYERS
It is an understatement to say that I’m a “frequent flyer.” My job requires me to travel across North America almost every week to meet with clients.
With this constant travel comes (at least, for me) a lot of thinking about the airline industry. Recently I was contemplating the variations in airfare. How often have you sat next to someone on a flight that paid 2-3 times what you paid for a ticket? You are both receiving the exact same service – travel from point A to point B – so what gives?
THE PRICE IS (USUALLY) RIGHT
Robert Crandle, the former CEO of American Airlines once said, “If I have 2,000 customers on a given route and 400 different prices, I am obviously short 1,600 prices.” At first glance this sounds like a quote from a greedy airline executive, but it’s just an example of understanding customer value.
The price of an airline ticket is determined by the value each individual traveler associates with that trip.
In almost every situation, no two people would place the same exact value on any given trip. A business traveler that needs to book a last-minute trip will have a higher perceived value on a flight than a family that booked a vacation three months earlier. The family probably has more flexibility and more price sensitivity to the trip. Hence the reason airlines charge higher prices to last-minute travelers.
Here are four major pricing strategies from the airline industry that you can apply to your organization:
1) Match your prices to what your customers value.
If you are currently selling your product/service at one or a few price levels, consider having a broad range of prices to match the broad range of values from your customers.
If necessary, identify variables beyond price to differentiate your groups.
For example, airlines are typically discounting flights on Wednesdays since they see slowest traffic. Adapt this strategy, and consider offering your customers a lower price if they agree to take delivery during your slowest period.
2) Reward your best customers.
An airline’s frequent flyer program is a tool to identify and reward top customers. Once a frequent traveler has access to the perks associated with a specific airline’s frequent flyer program, they are unlikely to change airlines.
My United Airlines frequent flyer status means I get to board the flight first, get upgraded to first class on a regular basis and that my checked bags fly for free. I also have a dedicated phone number with access to United’s best customer service agents. At the end of the day, I’m still traveling from point A to point B with everyone else, but it feels like a different experience. The airlines know that they must reward their best customers.
To adapt this to your business, ask how you are rewarding your best customers.
3) Create up-sell and cross-sell opportunities.
A consumer purchasing an airline ticket online is presented with numerous opportunities to purchase an additional product or service. For instance, you can pay a small fee to purchase a seat with more legroom. For another small fee, you can board the flight early or upgrade to first class.
The airlines have also mastered the cross-sell.
Need a rental car when you land? The airline has a partner that would be happy to take care of that. Need a hotel room? The airline can provide a convenient partner to book your room at a special rate.
For your organization, map out every step of your sales and delivery process to determine if you’re missing any up-sell or cross-sell opportunities.
4) Use strategic partners to offer more.
It’s impractical for most airlines to fly to every destination, but they know their customers need to fly to locations where they may not have a hub. Thus, it’s very common for airlines to “share” routes. You might book your flight to Australia on American Airlines, but the actual carrier that you fly on is Qantas. By packaging these solutions to travelers, airlines can capture more flights and satisfy their customers’ needs.
In your business, analyze your customers’ needs in detail.
What do they really value, and how can you create strategic partnerships to deliver that to them through a broader range of products or services?
So next time you find yourself in an airport, consider what you can learn from the airlines’ pricing strategy that can be applied to your organization. And don’t feel bad if the person next to you paid more money for the same flight. They clearly value the flight more than you.
The measure of success is more than just salary
(EDITORIAL) Chicago-based hair stylist, Lindsey Olson, explains why passion and dedication is proven to be the most fruitful attributes for success.
Six figure stigmas
For years, I’ve been interested in the societal stigma that you have to be a doctor or a lawyer in order to make a solid salary. But as time goes on, what I’ve learned is that it isn’t what you do that necessarily makes you money but what you put into it.
We live in a different world today than we did even 20 years ago and we have more of an ability to think outside of the box when it comes to the search for success. Lindsey Olson, a Chicago-based hair stylist, is a living example of this.
Finding a passion and running with it
After developing an interest for hair early on in life, Olson began her career as a shampoo technician in a salon while still in high school. Immediately after graduation, she went into cosmetology school and continued bettering her craft.
Now, she has found success as a salon professional, as well as a Redken Exchange Artist and educator.
From there, it has become a matter of building onto the foundation of her success by trying new avenues and taking on new challenges.
Risk and reward
“I’ve always had the mindset that anything is possible,” says Olson. “It’s almost like taking risk. Once you start doing a little bit and see what happens, then you do a little bit more…the bigger the risk the bigger the reward. It really comes down to that if you believe in yourself, anything is possible.”
After her years working in a salon, Olson joined the Redken team in 2007.
With this, she has traveled internationally and has taught the ins and outs of hair coloring, cutting, and styling.
Being that the industry of style as a whole can be quite competitive, Olson has had to learn how to brand herself in a way that sets her apart from the competition. With this, she is very active on social media by sharing the work she has done with clients and models.
Branding against the competition
In addition, she also creates hair tutorials that she shares with her followers as a way to gain traction. “[What’s important is] making it known who I am as a person, as an educator, as a hair stylist, [sharing] my style and showing that to people,” Olson explains.
Despite the fact that her dentist tried to take the wind out of her sails in high school by asking what else she had lined up for herself besides cosmetology school, Olson has continued to take on bigger and better challenges. By doing shown, she has proven that a passion can be successful.
In Lindsey’s words
“Moral of the story, I think, is, don’t ever think that you can’t do something. The moments where you get to the place where you doubt yourself are almost some of the best,” states Olson. “If your life isn’t a little chaotic and challenging, you’re not living.”
Why entrepreneurs need minimalism too
(EDITORIAL) You don’t have to ditch your couch and all but one cushion to be a minimalist. Try applying minimalist thinking to your job if you’re having trouble focusing.
As a concept, minimalism is often accepted as the “getting rid of most of your stuff and sleeping on the floor” fad.
In reality, minimalism is much closer to living an organized life with a pleasant sprinkling of simplicity as garnish—and it may be the answer to your entrepreneurial woes.
I in no way profess to be an expert on this topic, nor do I claim to have “all of the answers” (despite what 16-year-old Jack may have thought).
I’m a firm believer that you should take 99 percent of peoples’ suggestions with a grain of salt, and that mentality holds true here as well.
However, if you’re struggling to focus on your goals and you consistently fall short of your own expectations, following some of these guidelines may give you the clarity of mind that you need to continue.
First, reduce visual clutter.
If you’re anything like the stereotypical entrepreneur, you keep a thousand tabs open on your computer and your PC’s desktop is an unholy amalgam of productivity apps, photoshop templates, and—for some reason—three different versions of iTunes.
Your literal desktop doesn’t fare much better: it’s cluttered with notes, coffee rings, Styrofoam coffee cups, coffee mugs (you drink a lot of coffee, okay?), writing utensils, electronic devices, and…
Stop. You’re giving yourself virtual and visual ADHD.
Cut down on the amount of crap you have to look at and organize your stuff according to its importance. The less time you have to spend looking for the right tab or for your favorite notepad, the more time you’ll spend actually using it.
And, y’know, maybe invest in a thermos.
Instead of splitting your focus, try accomplishing one task before tackling another one.
You may find that focusing on one job until it’s finished and then moving on to the next item on your list improves both your productivity throughout the day and the quality with which each task is accomplished.
Who says you can’t have quality and quantity?
In addition to focusing on one thing at a time, you should be investing your energy in the things that actually matter. Don’t let the inevitabilities of adult life (e.g., taxes, paperwork, an acute awareness of your own mortality, etc.) draw your attention away from the “life” part of that equation.
Instead of worrying about how you’re going to accomplish X, Y, and/or Z at work tomorrow while you’re cooking dinner, try prioritizing the task at hand.If you allow the important things in your life to hold more value than the ultimately less important stuff, you’ll start to treat it as such.Click To Tweet
Rather than stressing about the Mt. Everest that is your paperwork pile for the following Monday, get your car’s oil changed so that you have one less thing to think about.
Minimalism doesn’t have to be about ditching your 83 lamps and the football-themed TV stand in your living room – it’s about figuring out the few truly important aspects of your daily existence and focusing on them with everything you’ve got.
As an entrepreneur, you have the privilege of getting to do just that.
Two myths about business that could land you in a lawsuit
(EDITORIAL) Two misconceptions in the business world can either make or break a small business.
When you’re an entrepreneur with a small staff, you may be in the habit of running your team casually.
While there’s nothing wrong with creating a casual environment for your team (most people function better in a relaxed environment), it’s wise to pay close attention to certain legal details to make sure you’re covered.
Labor laws still apply
It’s easy to misinterpret certain aspects of labor law since there is a lot of misinformation about what you can and cannot do inside of an employee-employer relationship. And since labor laws vary from state to state, it can be even more confusing.
As an entrepreneur, it might be strange to think of yourself as an employer. But when you’re the boss, there’s no way around it.
Here are two employment myths you might face as an entrepreneur along with the information you need to discern what’s actually true. Because these myths carry a lot of risk to your business, it’s important that you contact an attorney for advice.
1. Employees can waive their meal breaks without compensation
It’s a common assumption that any agreement in writing is an enforceable, legally binding contract, no matter what it contains. And for the most part, that’s true.
However, there are certain rights that cannot be signed away so easily.
For example, many states in the US have strict regulations around when and how employees can forfeit their unpaid meal breaks.
While meal breaks aren’t required at the Federal level, they are mandated at the state level and each state has different requirements that must be followed by employers. While some states allow employees to waive their meal breaks, on the other end of that the employer is usually required to compensate the employee.
For example, in California an employee can waive their 30-minute unpaid meal break only if they do so in writing and their scheduled shift is no more than 6 hours. In other words, when a shift is more than 6 hours, the meal break cannot be waived.
Additionally, when an employee waives their unpaid meal break, they must be paid for an on duty meal break and be compensated with an extra hour of pay for the day.
Vermont, on the other hand, provides no specific provisions for meal breaks and according to the Department of Labor, “Employees are to be given ’reasonable opportunities’ during work periods to eat and use toilet facilities in order to protect the health and hygiene of the employee.”
As you can see, some states have specific regulations while others have general rules that can be interpreted differently by each employer. It’s best not to make any assumptions and contact a labor law attorney to help you determine exactly what laws apply to you.
2. You own the copyright to all employee works
So you’ve hired both an employee and an independent contractor to design some graphics for your website. You might assume you automatically own the copyright to those graphics. After all, if you paid money, shouldn’t you own it?
While you may have paid a small fortune for your graphics, you may not be the legal copyright holder.
Employees vs. independent contractors
When your employee creates a work (like graphic design) as part of their job, it’s automatically considered a “work made for hire,” which means you own the copyright. An independent contractor, however, is different.
While any legitimate work made for hire will give you the copyright, just because you created a work for hire agreement with your independent contractor doesn’t mean the work actually falls under the category of a work made for hire.
According to the Copyright Act (17 U.S.C. § 101) a work made for hire is defined as “a work specially ordered or commissioned for use as a contribution to a collective work, as a part of a motion picture or other audiovisual work, as a translation, as a supplementary work, as a compilation, as an instructional text, as a test, as answer material for a test, or as an atlas.”
This means that unless your graphic design work (or other work you paid for) meets these requirements, it’s not a work made for hire.
In order to obtain the copyright, you need to obtain a copyright transfer directly from the creator, even though you’ve already paid for the work.
Always play it safe
The boundaries of intellectual property rights can be confusing. You can protect your business by playing it safe and not making any assumptions before consulting an attorney to help you discern the specific laws in your state.
Tech News2 weeks ago
Neuro+: Video games controlled by the brain help kids and adults with ADD/ADHD
Business Finance1 week ago
Poindexter helps handle finances so you can focus on your business
Tech News5 days ago
Yell ‘Marco,’ this app makes your phone yell ‘Polo’
Business Entrepreneur2 weeks ago
How to call out and correct gender bias at work
Tech News1 week ago
We’ve all seen job listings for UX writers, but what exactly is UX writing?
Opinion Editorials6 days ago
How you can be a positive point of change in the service industry
Business Marketing6 days ago
Ten podcasts that every business owner should hear
Opinion Editorials7 days ago
The secret to a high-performance culture