Pricing is a very controversial subject for many businesses, especially when it comes to advertising them. So do you put prices on your website? Or are you firmly in the ‘no prices on show’ camp?
I recently carried out some research on pricing in my business community and it threw up some interesting opinions.
So, I thought I’d give you an overview of those opinions, along with my view on the subject.
If you’re not putting prices on your website, it’s normally down to one of the following three reasons:
In my line of work, I speak to a lot of business owners, and one thing is clear. So many of them are burying their head in the sand when it comes to their business numbers. And, if you don’t know how much it costs to run your business - it’s a big problem for you too.
You need to find clarity around your numbers if you want to manage your business effectively. Because, not only will it help you transform your business, but it will also free you up from a lot of stress and overwhelm!
So, what do I mean by numbers and is there a way to work out the numbers you need?
Let’s look to get some clarity around it.
Have you looked at how much it costs to run your business? When you run your own business, it’s easy to get sidetracked on the marketing numbers you need to get a good ROI on your advertising - such as conversion rates and email open rates etc.
But you also need an idea of your minimum costs for your business. Numbers...
Do you know what pricing personality you are? These four personalities are something that can help you see your weaknesses and issues around money and pricing. They also indicate how to remedy them, making them super-valuable to your success.
Because let’s face it. If you want to become a more successful business, you need to understand where you’re losing money through your actions and beliefs.
As mentioned in Tackling your pricing gremlins, your pricing personality can play a big part in identifying the limiting beliefs and traits you have around pricing. You can then look to tackle the pricing gremlins that have been plaguing your business and holding you back.
So, if you’re wondering what those four pricing personality types are, here’s a quick rundown on each.
As an Overpricing Orla, you’re pricing based on what you believe you’re worth, but you’re not necessarily showcasing the social proof to...
Pricing is one of those topics of conversation that can get heated very quickly. For many small businesses, in particular, it’s the type of conversation that will bring up those pricing gremlins you have around pricing your products or services.
But it’s those pricing gremlins that can hold you back if you don’t get them sorted.
So, let’s take a look at the typical pricing gremlins that could be affecting your business growth.
It’s great to research what other, similar businesses are charging, but use them as a guide, not a rule. Other people’s pricing doesn’t factor in the results you can get for your clients, your abilities and expertise.
And it certainly doesn’t factor in your costings and time, so you need another strategy.
Instead, before you price anything, know what your minimum costs are. [Don’t worry if this sounds overwhelming - I have a pricing calculator that can help...
I get asked a lot whether you need an accounting system to run your accounts, so I have put together 5 reasons you would want an accounting system.
You are a limited company
If you are a limited company, you need an accounting system. The requirements for submitting accounts and tax mean it is a huge advantage to have an accounting system and would save on year end accounting fees.
You are VAT registered
If you are VAT registered or plan to be, even if you are a sole trader, Xero can submit your VAT return at the press of a button. It makes a huge difference to managing VAT in your business.
Your business is complicated
Your business may have several revenue streams to manage, or payroll to pay, or be in business with someone else. Or you are a product business with stock to manage. Having a system, rather than a spreadsheet makes managing your business much easier.
Real time information
Having information and knowledge at...
Which of your products and services make the most money? Is it the one you love to sell? Or is it the one that is really low priced but you sell loads of?
In a business where you offer several different streams of income, you need to know which ones make you money. The ones that take a lot of effort might be making you no money and you need to think about how to generate more money from those that are bestsellers.
To do this, you need to know your cost per product or service.
In your business, you maybe offer a course, 1:1 coaching, workshops and an ebook as an example. There will be some direct costs (you only incur if you do the work), such as the hire of a venue, or paying a speaker, plus affiliates and associates.
Then there are the indirect costs (overheads). These include, your website charges, social media, VA and so on plus paying yourself. This is everything else, basically, in your business. You need to work out how much this is per hour by taking...