There is more tension than usual in the business world.  Concerns about the economy abound.  So, what are the biggest challenges US businesses are facing in 2023?  According to various surveys, the major concerns are:

For many business owners and professionals, networking is an essential part of business.  And attending events – whether formal or informal, professional or personal – is a great way to meet new people, learn about new opportunities, and build relationships that can benefit your business and/or career.  However, if you don’t prepare properly, you can easily end up feeling lost, overwhelmed, or even awkward. Preparing before attending an event helps you know what to expect.  Because events can vary greatly in size, format, and purpose, doing some research ahead of time will provide a better sense of what to expect and that will boost your confidence. 

Here are some top tips on what to do before, during and after a networking event in order to make the most of each opportunity.

For business owners, networking is important in order to monitor and improve reputation, increase visibility, develop a stronger support network, increase business growth, and develop impactful connections.  In other words, it is essential.  But for many, the idea of networking is anathema.  But it doesn’t have to be.  Beyond conferences and industry events, there are many situations where networking can be fun, fruitful and stress-free.  Only when networking is seen as something to adore, rather than a chore, can it be embraced as a lifelong activity.  Here’s where, when and how.

Use the Problem to Sell the Solution

Problems are opportunities and every company is in the problem-solving business.  The goal of sales, then, is to understand each customer’s very specific problem / need and help find the optimal solution.  When a salesperson can identify a customer’s problem and then offer the best fix, the customer is more likely to buy.  Seems obvious and yet so many companies get it wrong.  They spend a lot of time describing the products or services they sell rather than the solutions they provide.  Here’s the difference and why it matters. 

Sales and Psychology Go Hand-in-Hand

Virtually every organization sells something.  Businesses sell an asset, product or service.  Non-profits or not-for-profits sell an idea or benefit.  Even governments sell protection, regulation of actions, and services in exchange for taxes.  There is an element of sales — the trade of a product, commodity, idea or service for money or time — in every human exchange.  And all sales require an understanding of human behavior.  So sales and psychology go hand-in-hand.  But how does a business owner use psychology to benefit his bottom line?   

More Psychological Strategies in Pricing

Human psychology plays a big role in how people perceive prices and pricing has a big impact in how buying decisions are made.  For instance, pricing influences the perception of value.  People often associate higher prices with higher quality, even if the product or service is no different from a lower-priced option. This is known as the “halo effect.”  By setting a higher price, businesses can create the perception of value, even if the product or service is not actually worth that much.  Also, pricing affects decision-making. When people are faced with a difficult decision, they might use price to make the decision easier. For example, if deciding between two products that are nearly identical, they might choose the one that’s priced lower to justify choosing one over the other… or the one that’s priced higher to explain that the choice was based on quality.  In effect, pricing often serves as a shortcut for making decisions, especially when it is unclear which option is best.  And, pricing can evoke emotions. Prices can trigger emotions like fear, greed, and scarcity. For example, a sale price can create a sense of urgency, which can lead to impulse buying. Similarly, a high price can create a sense of exclusivity, which can make a product more desirable.

Psychological Strategies in Pricing

Smart business owners often use psychological sales triggers to influence customers’ purchases.  And these strategies are also used to help cross-sell or upsell products or services.  Psychological triggers can be used to make products seem more or less expensive, create a sense of urgency, or influence the way that customers think about value.  For example, they can use price anchoring.  That is where a higher-priced product is used to set the standard for what a product is worth. This can make a lower-priced product seem like a good deal, even if it is not actually that much cheaper.  Or a limited-time offer creates urgency by offering a product or services only for a short period of time, such as during a sale or promotion. But these are just two of a myriad of psychological strategies used in pricing.  Here are five that are used often and are still effective even though people about them.

Last week, you went to Ikea to buy some inexpensive magazine holders to file the last dozen issues of Harvard Business Review piled on the floor next to your desk.  You walked into the store and quickly worked your way through the expertly-designed rooms showcasing furnishings for different purposes.  Living Rooms.  Dining Rooms.   Bedrooms.   Offices.  One such Office was decorated with a sleek, minimalist white desk that adjusts height so you can work while sitting or standing.  There are white, glass-front book cases, a track light above the desk, a vibrant rug, and a reclining, white leather Executive Chair.  On the bookshelves are books, tasteful decorations and those magazine holders you want.  But now that you’ve seen them in this setting, surrounded by all of the complimentary furnishings, you pause to admire the décor.  The Executive Chair looks so sleek that you think ‘it’s probably not comfortable’.  But it IS comfortable… more than comfortable.  It’s luxurious and provides the perfect amount of lumbar support.  You realize your current desk chair at home is not nearly as comfortable.  You think ‘in this chair, I will be able to work late without straining my back.’  You decide you need one of those chairs.  You grab a tag, a couple of those magazine holders and head for register. 

Focus on the Problem, Not the Solution

The old adage “Necessity is the mother of invention” — around for thousands of years — describes the notion that people are more likely to come up with new ideas when trying to address a need or solve a problem.  While the saying is thought to have originated in ancient Greece, it probably predates that because it points to man’s ingenuity in the face of adversity.  It reminds us that people are often at their most creative when faced with a challenge.  When forced to ‘think outside the box’, we are more likely to come up with new and innovative solutions.

In business, innovation is the ultimate game changer.  Real innovation (not just tiny tweaks or insignificant modifications) can overcome a multitude of company failings and disadvantages, including not being first-to-market.  In fact, an ingenious way to improve a product or service can make being a second-mover, third-mover or even tenth-mover in the market irrelevant.  Whether first or last and regardless of company size, innovation allows a business to: