Are you charging enough ?

March 13, 2022

Many business owners base their pricing on what their competitors charge or on what they “think” their customer will pay.

If your prices are being determined by your competitors, who could have totally different cost structures, operating expenses, finance charges, sources of income – you are operating in their world.

Similarly, trying to decide how much your customers are willing to pay is a GUESS, based on nothing more than your gut instinct.

There is no solid foundation for charging like this.

When it comes to pricing do it strategically:

Do you know how much it costs you to operate every week?

Do you know your hourly operating costs?

Do you know if you are making money or losing money right now?

Did you make money today?

 

The only difference between a business, a hobby and a charity is PROFIT. To make a profit you must charge enough.

Don’t operate at the cheap end of your industry. While this may seem like an easy way to gain market share it always leads to disaster in the end.

Charge more, base your pricing on sound business reasoning, know your numbers.