Management Memos

Making Measurably More For You Since 1985

February, 2020

Just Do Something Just Do Something

In January we said '2020 is the year to take some decisive action'. So stop with the words, and  just do something! Here is one approach that will get you real traction as the year progresses!

What's Happening?

Simple answer? No-one knows. What we can say is that customer confidence is up (from the previous month) - that means customers are an optimistic lot who think things will get better. But then, at teh same time, customer sentiment is down. That means this optimistic lot doesn't feel like spending up any time soon. You can see that from our 'News Clues' note on the My Red Zebra home page.

Consumer Confidence

Australia Consumer Confidence



The World Stage

Australia's economy has been weak for some time now, it's just that Treasury and the Government won't admit it. We're already losing enormous slices from our economy in depleted overseas arrivals for study and tourism, and there has been the gut-punch to agriculture and regional communities from bushfires and now floods. Our total pool of available sales is shrinking.

Add in the potential for a significant drop in world trade following the outbreak of COVID-19, (the now official name for the coronavirus outbreak) and we can be sure that this year is the time to seriously rebuild 'resilient viability' into every business!


Step 1

For this month, we'll take the first, and vital underlying step to make any business strong. We'll get the pricing right. We'll take the second step next month.

Restaurants are empty

We have heard much discussion about the restaurant industry of late, and in particular, the heavy adverse impact of the home-delivery revolution. At a local fish and chip shop, we see the endless stream of 'Uber Eats' and other drivers coming in to collect orders, while local buyers get pushed down the queue.

They have more staff now (mostly family) and they're working much harder. It's clear that they're moving a lot of product.

At the same time, they're working much, much, harder to keep local shoppers happy who are getting 'queue jumped' by Uber Eats.

With 35% commission to Uber, it is worth it? We can calculate that answer, but not now! When you're running at a Return on Sales of around 10%, that size commission can be an invitation to modern slavery. Should they adjust the prices? The answer? It depends - because the answer is multi-faceted, and not at all simple.


Take a Trip On the Wild Side

Imagine you had complete freedom on pricing. Wouldn't it be lovely!

No-one ever does, but we do have a lot of freedom we don't take. That's because we don't calculate our prices from the 'ground up', based on how we buy and how much our business needs. When you do that, it's both exciting and scary.

Pricing is for profit

Exciting, because you see just how much freedom you really do have. Scary, because you see how much you have to do to get the business into its 'sweet spot'!

This is a really complex topic. It's no good thinking like a fish and chips shop operator (like our example above), if your business is concrete polishing, is it? Even so, the same fundamental principles apply to all businesses. You have to make enough gross profit to cover expenses and make it all worthwhile.

That's where the 'My Red Zebra Full Value Pricing Calculator' is invaluable. With this pricing tool, that was first developed over forty years ago and has shown stellar results in growing businesses and their profits, it is possible to tailor pricing to your own particular situation. It's not easy, though - it takes commitment, and an  open mind.

Do you want to 'take a ride on the wild side' with a new approach to pricing? Do you want to make your business better-balanced, more resilient, and more profitable before you take on the tough job of building up your business in this very troubling year? Because times are tough, we have a special plan you can sample for free.  Click the button and we'll email you details.


 Just click right here   Then press 'Send'. We'll do the rest!

(Offer ends March 31, 2020)


Taking Your Own Road

Back in the days of the GFC (do you remember that?), we ran a similar offer, and some people took us up on it. Regrettably, most responded that they were reassured that they already had the right pricing structure. Sadly, those people had missed the point.

In one case, we showed that a change in price profiling would add $36,000 to the bottom line. "Good", our client said, "I thought we were pretty right!" - as he walked away from an extra $36,000 each year! If you're ready to open up to a more profitable future, click the button!

Perhaps you don't want to look at your pricing issues in a new and different way. That's OK. But do review your prices now - before the storm hits. This year is going to be a pretty rough cruise!


You can't run 'business as usual' in 2020. Drought, COVID-19, bushfires, and floods, have seen to that. So take a new look!

Full Value Pricing is sophisticated and powerful. Perhaps you'd like to discuss it in more detail. Then click the red button above, or phone us (see the numbers below). There is absolutely no obligation in contacting us for a discussion.


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Any advice, information or comment contained in this document is general in nature, and should not be relied on as the basis for any specific commercial, business, employment, or financial decision. Specific advice should always be obtained for each individual circumstance. Accordingly any advice, information or comment contained herein is for general guidance only.