We caught up with the brilliant and insightful Michael Ng a few weeks ago and have shared our conversation below.
Michael, thanks for taking the time to share your stories with us today Can you talk to us about a risk you’ve taken – walk us through the story?
Interviewer: “In the face of stiff competition and a challenging economy, some businesses might be tempted to lower their prices to stay afloat. Can you share your perspective on why it’s worth taking the risk of maintaining or even raising your prices while competitors are undercutting you?”
Interviewee: “Definitely, there is stiff competition. Everyday it seems like there is another bartending company popping up fighting for business. It is so tempting to lower prices when everyone seems to be undercutting, but I firmly believe in staying true to your pricing, or even raising prices when the time calls for it. For example, one reason would be value recognition. When you maintain or raise your prices, you are in a way establishing the value you provide. Even though it’s not always the case in general, clients often equate higher prices with higher quality. Another reason would be how sustainable is it to keep going with the low pricing? How long can your business survive continuing operations with such low profit margins? In my opinion it’s not enough to raise prices to maintain, but important to raise prices to cover growth and improvement. One thing I don’t want to do is fight a price war in a war of what I call “winning losers.” You may have gotten business for a brief moment; however, the negative long-term effects can globally bring down the industry’s earning power convincing prospective clients to expect low prices regardless of quality. You can position your business as one that prioritizes quality and long-term relationships over short-term benefits. Lastly, I think you can cultivate client trust through thorough consistent explanations of price increases which can be a jump-off point to highlighting why your company is even better than ever and always looking to improve. This can reflect reliability and integrity to your clients for more long-term relationships.
Interviewer: “Regarding raising prices to reflect growing value, can you share your thoughts on why and how this should be done?”
Interviewee: “Sure. Raising prices to reflect growing value is a necessary step for any business that is evolving, improving, or expanding its offerings. On why it should be done-pricing should increase proportionally to value. As your business improves, it’s fair to raise pricing to match the upgraded service. Also, you really need to continually invest more capital in your business. You need to pay employees more for high skill level, upgrade equipment, anything that goes into R&D, and also advertising is crucial. In our technological age, it’s important to be optimize social media reach and in the food/drink industry media in the way of video and/or pictures are paramount. This leads into attracting the right clients. Increasing prices can attract clients who value quality and are willing to pay for it. In our case we reach for high-end and wealthy clients in the upper salary brackets. This leads to more profitable and satisfying client relationships, but your service MUST match the expectations of the demographics that you want to work with. If you just want to be a beer and wine bartender at very casual gatherings, you must re-tool your offerings to services that are more inline with the kind parties you want to service-definitely do your research.”
Interviewer: “Can you give some tips on how you would accomplish this?”
Interviewee: “Well, to ensure acceptance and avoid harming relationships, raising prices should be approached with a lot of care. One important part is that you need to give clients time to process the new pricing and let them know in advance. Explain in detail the reasoning and the added value. Don’t be vague-go ahead and be explicit-maybe you had additional training or upgraded equipment to better serve clients. For example, we continually look for high-end tools that really add to presentation and help improve the quality of service. In other words, highlight the value. You can also offer different options to show flexibility and a willingness to work with the client. Potential clients will call and then and tell you what competitors are offering. Some don’t even do their research and just cold call without knowing anything about your business. My advice would be to be a sort of story teller-you may have to jot some things down or write a quasi-script that you will add to and subtract from over time, but then it just gets easier to talk about your services and how yours is way ahead of your competitors. Insert your energy and personality into your explanations and refer them to any resources available to excite them! This is the social media era, so you can refer potential clients to your professional website and social media portals. In my business for cocktails, gorgeous pictures and even better-videos can ignite any potential client’s imagination to put your business as a front-runner. For your older clients, really take the time to personalize your approach for a sort of “soft landing.” Acknowledge their loyalty and discuss their price increase in context of your longstanding and I emphasize the word “partnership” instead of characterizing it as appreciating their business. You can give long-term clients a one-time discount that will revert to the new pricing after their next booking-which most will appreciate. Remember you don’t make money, you make relationships!”
Interviewer: “Lastly, when it comes to refusing discounts to secure a job, why is it crucial to stand firm on your pricing?”
Interviewee: “Refusing to give discounts is an important stance to maintain for several reasons: You safeguard your value. Giving discounts to get more business can diminish the perceived value of your product or service. It sends a message that your standard pricing is negotiable, and it only ever goes up-never down, potentially eroding trust in the quality of your offerings. In our case, you lose that “it” or luxury premium factor that you can’t put a price on. For example, most ultra-premium luxury brands hardly ever discount and we’ve all seen fashion brands tumble once they are found in discount stores. But it goes without saying that you must remember that you need to set up and build a body of work in addition to packaging your services in a way that will effectively and attractively reach your clients be it social media advertising or going to events. You cannot just charge high prices without anything to show for it. Another thing is that sustainability can be compromised by over-discounting. You will always be upgrading and improving your business and cutting into profit margins will be an obstacle to re-investing in your company making your company less competitive. There is always someone out there hungry ready to hop over you. They will do what any company will do-they will analyze what you are doing take what they like and improve upon it in their own way-business in general can be cut-throat! Try not to set a precedent in caving in to discount requests even for clients, instead offer an small add-on that will not negatively affect your bottom line. Also, other clients may expect discounts and create a domino effect. Maintaining or raising prices can assure quality. In other words, lower and lower fees may introduce time constraints to make up for lost money by working a volume business to make up for the money. This can make you cut corners and diminish quality, which will damage your reputation. Also, you can be mentally drained and in some cases your quality of work can follow your plummeting pay through frustration or just plain being fed up!”
Interviewer: “You talked about why you should stick to your pricing, let’s talk about your thought process in how and when to raise prices.”
Interviewee: “Ok, in terms of figuring out how much and when to raise prices, let’s take a systematic approach: First, look at cost analysis-look at your operating costs and profitability often to evaluate when a price increase is necessary. Second, stay informed about industry standards and trends. If competitors are raising their prices, it may be an indicator that it’s time to do the same. Call around and pretend to be a client! In addition to paying attention to competitors, listen to client feedback about your services and pricing. If clients consistently express satisfaction and see the value in your offerings, it may indicate they’re willing to accept a price increase. You clients and in a similar vein, your competitors will let you know how the economic climate fares. Also, don’t hesitate to ask other businesses who aren’t direct competitors per se but who are in a related field. For example, we continually talk to other caterers, planners, bar owners, spirits distributors for their insights.”
Interviewer: “Thank you so much for taking the time to speak with us. Is there anything else you would like to say before we end the interview?”
Interviewee: “This challenging economy requires a balanced approach. While it may be tempting to lower prices to remain competitive, staying true to your pricing and even raising it can provide long-term benefits. The key is to know exactly what you offer-know your business through and through. If you believe in yourself and your business and are always continually making enhancements your passion will show through and that could mean a razor thin difference that puts you over the edge for a client trying to make a decision between you and an equal or even technically better competitor. In sum, be transparent in your communication, really highlight your value-remember it doesn’t hurt to do research on your competitors and your target audience! Lastly, offer flexibility when needed. Be brave and maintain your pricing integrity-you and your business deserve it!”
Michael, before we move on to more of these sorts of questions, can you take some time to bring our readers up to speed on you and what you do?
I may not be a virtuoso on the classical guitar, but my fingers find their true rhythm behind the bar. For over a decade, I’ve immersed myself in the world of teaching English, embraced the discipline of martial arts, and dedicated countless hours to volunteering. Yet, amidst these pursuits, one passion has always held my heart—mixology.
My journey into the cocktail craft began unexpectedly, in the sweltering heat of a summer just before graduate school. I enrolled in a bartending class, never imagining how profoundly it would shape my life. At the time, my knowledge of spirits was as basic as it gets—I could hardly tell a red from a white wine. However, as the days turned into nights, my love for mixology blossomed.
I delved into the art with fervor, practicing flair bartending for over four hours a day, determined to master every facet of the craft. Over time, I honed my skills and discovered my niche—creating imaginative, mouthwatering craft cocktails with a focus on fresh, quality ingredients.
But I aspired for more. I aimed to elevate my craft to what my clients say has reached an art form level (what clients keep saying), crafting cocktails that were not only delectable but visually stunning—worthy of praise that they are like works of art. It led me to the challenge I consider one of the most exhilarating in mixology—creating cocktails on the spot during live service. Each cocktail is a surprise, a symphony of flavors and aesthetics that leaves patrons in awe.
Cocktails, to me, are more than drinks; they are channels through which we share the depths of our souls and hearts, vessels that bring joy to those who savor them. Witnessing the expressions of delight and wonder on the faces of guests as they sip our creations is a reward that continually humbles and thrills my heart.
What sets me apart is not only my unwavering dedication but also my extensive industry experience. I’ve traversed the corporate side of the spirits world, coordinated events both locally and abroad, trained bartenders, consulted for restaurants, and collaborated with diverse brands. In essence, I’ve immersed myself into most facets of this dynamic industry.
So, for potential clients, followers, and enthusiasts, here’s what you need to know: I’m not just here to serve cocktails; I’m here to create an experience from the heart. Join me on a journey through the captivating world of mixology, where each libation carries its own story, and every sip is a note in that speaks to your soul from my soul. Together, we’ll craft moments that your guests will cherish forever. Cheers to taste, wonder, and endless surprises!
What do you think helped you build your reputation within your market?
Guests are often stunned at the breadth of my skill set when it comes to cocktail creation-especially in how fast a unique drink will be completed from concept to the final pour and garnish. Talent plays a part of course, but really it’s the practice and honing of skills is where the magic happens. I consistently practice my skills and research new methods that I enjoy. At a certain level of experience and practice, technical skill gets elevated to what some would characterize as an expression that is akin to art that imbues style and personality. Also, it’s not enough to learn a new technique to the point where you inject your style into it, it’s important to drill the technique to a point where you can perform under pressure and smoothly. This creates high standards in which the little details that build up to represent a sterling reputation. You hear terms like going “Above and beyond..” to characterize positive feedback, but if you have the consistent passion and drive for your craft the concept of going “above and beyond” will be interwoven in everything you do without conscious thought. When this concept of going “above and beyond” goes into auto-pilot mode, you have reached a level that sets you apart from your peers.
What’s been the most effective strategy for growing your clientele?
No matter how good or superior your services are, no one will know unless you effectively get your branding and services across in an attractive and effective manner. Image and presentation are extremely important in this field especially when you are directly interacting with customers. I invested a lot of time in educating myself looking for tutorials on photography and video editing for advertising purposes. Know how to delegate projects as you can’t be a professional at everything-learn when to hand off aspects of your business to others-sure you can learn a great deal of things yourself and be very autonomous; however, you must balance other areas of your life and business. Focus on your strengths in the meantime if you aren’t blessed with media know-how and hire or get friends to help you when you can. There were times that I had to hire a videographer and it really helped save valuable time and frustration. A great video person and photographer can do wonders for your business to showcase you in the best light. Potential clients appreciate production value and can see the effort put into your pictures and video. Excellent media also has the benefit of being shared on social media which can equate to incredible reach. Don’t post for the sake of posting to reach a certain number of posts, make them count. Quality posts attract quality attention! Also research your target market carefully and create posts that are made for your target audience!
Contact Info:
- Website: www.btgbartending.com
- Instagram: btg.bartending
- Yelp: https://www.yelp.com/biz/behind-the-glass-bartending-huntington-beach
- Other: I will be setting up a Youtube channel and blog soon!