When a crisis comes, we have to immediately have to switch gears to keep businesses running in an unfamiliar landscape. To seasoned of business owners, difficult times have come and gone, yet they’ve always found a way to survive.

We spoke to business owners from different industries to learn about their stories of overcoming a crisis. Here are 4 lessons you can learn from their stories:

Lesson 1: Big mistakes hurt, but learning from them makes you stronger

Our only vendor for poultry products back then played us out! …It was horrible. …

How do you choose among different pricing strategies when launching a new product? Why do some products increase revenue when prices are increased and others don’t? Do you have high sales volume but declining profitability?

Well, are you using the right pricing strategies for your business?

Pricing is one of the most important pillars for the success of a business. As pricing makes a huge impact on profitability of a business, big companies in every industry are extremely careful with their pricing, spending millions of dollars to find the best pricing strategies.

But pricing is also one of the most overlooked factors by small business owners. Many small businesses simply price their goods and services based on the cost of goods sold. However, this is really risky for businesses. Setting the price too high will lead to a drop in sales volume, while a price too low will eat into your profitability. …

When Covid-19 arrived, many distributors saw an opportunity to capitalize on people’s fears and overpriced their products. Masks, sanitizers, and toilet paper has never seen such price hikes, even in the past during the SARS epidemic. Many major eCommerce platforms have cracked down on thousands of these price gouging sellers. However these efforts are often manual and thus have limited impact. We found these absurd, outrageous prices that people have listed when analyzing competitor pricing for these hot selling necessities:

$1,000 for a single facial mask (USD)

In Kansas — United States, a seller capitalized on the dwindling local stocks and listed each facial mask for $1,000 on the Facebook Marketplace. Such instances of overpricing are unethical. Sadly however they are likely to work if they used price positioning strategies correctly. …

A winning business strategy needs regular assessment on its progress, often done by setting KPIs. But to track KPIs for your business is another story. It can sometimes feel like new year resolutions. You start the year off setting enthusiastic goals, but throughout the year your efforts get muddled by unexpected problems and day-to-day struggles.

Or, you may find that the targets you set did not match what your business really needed to monitor in order to succeed.

There are many reasons why setting business goals can fail. …

We at Konigle realise how important and valuable your business is to you. No doubt, you’ve worked a lot, put in all your efforts and tried everything to run it successfully. But small companies come up against a lot of different challenges compared to larger companies. Some are harder to overcome than others — and according to Labor Statistics, about 20% of small businesses fail by the end of their first year. By the end of their fifth year, 50% go under; and by the tenth year, that number rises to 80%.

That hurts right? But that’s the reality which companies are facing. …

Many businesses lower their prices in order to win customers. This is especially true online, where people find cheaper options in just a few clicks. But only driving down prices to woo customers will eventually backfire on your business:

  • You attract a group of customers that have weak brand loyalty, or are less likely to purchase from you again.
  • You compete with other businesses that can easily copy your pricing, or go even lower. This makes it difficult to maintain your margins and sustain your business.
  • It makes it more difficult to invest in new processes, products or infrastructure that improve your business. …

The 80–20 rule, or the Pareto principle, can be essentially summarized as a global observation that roughly 80% of all output comes from roughly 20% of the input. It’s the discovery that many things in life are distributed unequally, and that you can often find that a small proportion of your resources and actions has a much bigger impact than the rest of them combined.

Top businesses in the world use powerful, sophisticated analytics capabilities to identify how the 80–20 rule could be impacting every aspect of their business. …


Constance Tan

Sharing great stories of entrepreneurship and underdogs in the SME space | Business Development and Customer Success at Konigle | www.konigle.com

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