WYPs Message
UNDERSTANDING THE GENERATION GAP
As young professionals, we have all experienced the painful angst of a generation gap in the work place. Currently, the baby boomer generation (born 1946-1965) and the Xers (born 1965-1981) make up the majority of the workforce today, but more so than ever we are starting to see an infiltration of the Ys or Millennials (born 1982-1999). This fusion of generations has the potential to cause enormous headaches for employers and employees alike, due to the inherent differences in our overall understandings and pursuits.
Baby Boomers rely on the mentality that hard work pays off, and that loyalty creates opportunity. Xers on the other hand, have grown up in a period that saw new technological advancements, skyrocketing divorce rates, and the growth of big business. This has inevitably made them technologically savvy but also a tad bit skeptical as to the policy of institution, and therefore is more likely to trade loyalty for advancement. These characteristics also make them more likely to end the day at 5:00pm, and to feel no regrets about it!
Now here comes the Y Generation, who are characteristically known to not want to start the work day until 5:00pm! A generation that has grown up with cell phones, Internet, and computers are more eager to learn and question, and most likely to oppose. Unlike any other generation before them, they are likely to reject the notion of strict job descriptions and often change their career paths more than once.
Considering these generational characteristics one can likely imagine the picture that is building, and the problems that generation gaps can cause in a working environment. There is no "quick fix" solution, if there even is one, but while structuring a company or handling inner office disputes, keep in mind the characteristics of these generations. Understanding everyone's point of view will allow you to make a decision that can span the age gap, and keep your businesses running happily and profitably.
 Tally Rabatin, DreamMaker Bath & Kitchen
WYPs Advisory Council
The Whatcom Business Conference
By Debbye Omlie,
Communications Manager, SBDC
The Small Business Development Center is providing another Networking and Learning opportunity for the Whatcom Young Professionals. The Whatcom Business Conference is October 18th @ The Best Western Lakeway Inn. Download the save the date card.
Develop a Profitable Pricing Strategy
By Stephanie Artino
Setting your prices for products and services is one of the hardest questions that businesses grapple with. Inevitably, we tend undervalue what we provide. Why? The culprit is usually found within a couple of different reasons - mainly it's the fear of losing customers by pricing ourselves too high, but many times it can be found in a weak value proposition. What this means is that while we truly believe in the value of the services or products that we provide, we don't price ourselves accordingly.
For example, when you hear someone tell you your price is high, how do you respond? Do you stumble in your response and start backpedaling to get the sale, or do you have a confident response based on clear reasons on how what you have to offer is worth the price? Does your reason focus solely on your business or do you use industry or competitor information for validation? If you find that you are stumbling or using validations outside of your business, that's what I mean by a weak value proposition.
Your goal should be to set a price that is aligned with your business goals, is competitive within your market and allows you to make a profit. Here are some important points to consider:
Prices and Business Strategy
Before you can effectively set your prices, you need to know your strategic plan. Otherwise, you may end up completely opposite from where you want to go. Your strategic plan will identify a number of factors that impact your pricing strategy:
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Growth - what is your targeted growth rates for sales over specified periods of time?
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Profits - what are your annual profit targets and how do they align with growth rates?
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Value Proposition - what is the value in the products or service you provide?
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Market position - Where do you place yourself in the market? Do you focus generally or within a particular niche?
Understand market forces
Obviously, the market will drive pricing to some degree. It's always a good idea to keep abreast of what the market range of prices are for the products or services you offer. Industry associations and research publications are an excellent resource for this type of information. Once you know the market, your price should fit somewhere within that range based on your business strategy. Going outside the market range can be done, but requires a strong value or market proposition and may only be viable for the short-term.
Know your costs
Most businesses underestimate their real fixed and variable costs. The term 'costs' is not just about labor and materials; all marketing, administrative and operational costs have to be taken into account as well. Taking the time to understand your break-even points and activity-based costs will provide valuable information to incorporate in pricing decisions. It's also important to understand the market conditions affecting those costs, so that when your costs increase, you can adjust your prices accordingly.
Prepare a sales forecast
Once you know your strategic plan, market forces and costs, you should then prepare a sales forecast. A sales forecast provides you the opportunity to project the demand for your products or service over time. You can then use the forecast to test different pricing assumptions to determine what will be the best strategy for your business.
Customer feedback
The bottom line is that your customers are the best people to give you feedback on your prices. This can come in a couple of different forms and is always worth the effort in discovering the information. First, you can test your prices for various products or services and watch the change in sales. Second, you can get feedback through surveys and advisory boards. A word of caution for this - to get the best results, you want to gain feedback from satisfied customers. Why? Those are the ones that value what you do, want to do business with you and are the ones you should be focusing most of your efforts on retaining.
Once you set your pricing strategy, you'll want to re-evaluate it periodically. As the market changes and competitive forces vary, prices too may have to change. There are few absolutes in pricing other than an absolute need for them to cover all costs and generate profits in order to stay in business..
 Stephanie Artino is a CPA with Metcalf Hodges, a Certified Public Accounting and Business Consulting Firm in Bellingham. Stephanie is director of the Metcalf Hodges RAN ONE consulting program, a program designed to help small and medium sized businesses grow and reach their personal and professional goals.
Overheard at the Buzz
 Our gossip maven is busy gathering juicy buzz bits to feature in August's newsletter, be sure to check back next month for this column.
 Anny Havland, Neighborhood Mortgage
WYPs Advisory Council, Monthly Social Committee, Bakeview Buzz Leader
Summer Professional Development Series - Hobnobbing with the Big Wigs
- Event Marketing and Branding for Small Businesses -
An evening with Gerald Baron
Gerald Baron is president of Baron & Company, a marketing and public relations firm in Northwest Washington. He is also the founder and president of AudienceCentral, a provider of crisis communication information technology. Mr. Baron is the creator of PIER and the concept of virtual communication centers. PIER (Public Information and Emergency Response) has been adopted for use within the US Coast Guard and by many of the leading oil companies, as well as industry leaders such as Boeing, Allstate and WestFarm Foods. The system has been used effectively in many major events including Hurricane Katrina, the Selandang Ayu sinking in Alaska, the BP Texas City refinery accident and the G8 Summit in Georgia.
As a communication responder to the Olympic Pipeline accident, and several other events of significant public interest, Mr. Baron recognized the need for an improved technological solution if companies and organizations are going to meet the challenges of the instant news and Internet-dominated world. Mr. Baron has written three books, including Now is Too Late2: Corporate Survival in an Era of Instant News, published in 2006. He is a frequent speaker at national public relations and industry conferences.
Date: Thursday, August 9
Time: 6:00-9:00pm
Where: Aboard the beautiful sailboat, Shawmanee for a sunset cruise around Bellingham Bay Wine, Hors' dourves and dessert will be served
Cost: $35 WYPs members, $70 non-members
Attendance is limited to 40 people
RSVP: RSVP Online
Evening Social: June Recap, Upcoming July & August
JULY SOCIAL: Join Jaime Hernandez from Health & Exercise Prescriptions along with Peter James Photographic Art as they host the Carnival Fantastico on July 26th at the Lairmont Manor at 6pm. Download the Flyer
Carnival Fantastico will be a memorable WYPs networking event supercharged with performers, entertainment, prize drawings, as well as the unveiling of Pro Marketing Works by Peter James.
Health and Exercise Prescriptions, Lotta Fuda, and Peter James Photographic Art will be your hosts at this FREE event. RSVP Online today. >JUNE EVENING SOCIAL RECAP
Thank you all who attended the June Evening Social at the Bellingham Bells game sponsored by the Northwest Business Monthly. It was a wonderful evening for all who attended!
>UPCOMING EVENING SOCIALS
August Social - Excellence Northwest and Essence Catering invite you to join them on the Island Caper for a sunset cruise on Thursday, August 23, 2007. The boat will depart from Bellingham's Squalicum Harbor at 6:30 pm and will return at 9 pm. Appetizers and a light dinner along with two free drink tickets will be provided. Limited Space available - reserve your spot now! RSVP Today RSVPs must be received by Friday, August 17th.
For Information: www.bellinghamwyps.com
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Morning Buzz Schedule
Hear the latest business buzz while getting your caffeine buzz at a local Starbucks Cafe.
Barkley: Wed 7:00am
Downtown: Wed 8:00am
Sehome: Thurs 7:30am
Bakerview: Thurs 8:30am
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A division of the Bellingham/Whatcom Chamber of Commerce and Industry
