Often the hardest part of being a business owner is knowing what to charge for your product and/or service. You could compare your price to other businesses operating in your industry and niche, but who’s to say that they’re even doing it right!
When you know you’re the BOMB at what you do, you deliver an excellent product, and there is a verified NEED for what you offer, your business should THRIVE. If things still feel tight for you, then it’s likely that your pricing could be the culprit.
Let’s look at three key components of pricing for profit.
Know your business’s profit.
What’s your profit at the price you’re currently charging for products and/or services? Before you can make any adjustments, you need to know exactly how much it costs to run your business. Consider monthly operating expenses, plus annual expenses such as renewals and subscriptions. When compared against your sales, what’s left? If your operating expenses are streamlined, then the only way to increase your profits is through sales!
Know how much time it requires.
Try tracking your hours with a software tool like Toggl. This helps to understand the total amount of hours required to fulfill your product/service. Beyond that, how many clients/customers can you support in a week or a month? Look for ways to streamline your offers to either require less of your time (think: automation) or to be outsourced (think: contractors). Remember, time is money!
Know the value your offer provides to your clients and/or customers.
The simple idea here is you can get more clients or customers or higher-paying clients or customers. Ask yourself. Are you saving your clients time, money, and headache? How are you currently alleviating their issues and serving them well?
With those answers in mind, how can you make sure your marketing efforts connect with a wider audience of potential clients and customers who are looking for exactly what you have to offer? How can you increase the value of what you’re currently offering? How can you better communicate the value of and sell your offer at a higher price point?
Bottom line – don’t leave money on the table!
Now that you know three key components of pricing for profit, what changes will you be making in your business? DM me on Instagram, and let’s run through your plan together!
