Getting your pricing right

 
“How can I earn more money without working any more hours as I’m working too hard as it is?”
 
This is an Interesting question; however the answer is a little more complex.  When you dig deeper and question and understand what is actually happening under the surface,  most business owners want to deliver the very best service, quickly and as efficiently and for as little money as possible and this results in the headless chicken syndrome.
 
Let me explain what I mean by way of the following diagram

getting price right

getting price right

 

The problem is you CAN’T HAVE IT ALL (How often have you heard this……but it’s TRUE)this is where the problem lies, you can have any two facets but you can’t have all three together at the same time!
 
Good and fast will result in needing to charge a premium price to turn it around quickly and not sacrifice the quality of the product or service to meet demand.
 
Fast and Cheap will result in a product or service that is not of the greatest quality in the world (we all remember those cheap plastic toys on Christmas day that looked fab, but they had broken by boxing day or maybe if we were lucky would last till new year’s day!).  Don’t allow this to be your product or service!
 
Good and cheap will mean to make any money you would need to take your own time to produce and fit in around other higher value work!
 
You really need to understand who your customer is or the “MARKET” as I like to think of it.  Then you can make the right decisions in terms of what the customer or client will want and how much they are prepared to pay.  Don’t assume you know without asking you may get a pleasant surprise.
 
It’s not unusual
I can hear the Sir Tom Jones song, “it’s not unusual” ringing in my ears as I write this, but seriously, it’s really isn’t unusual for business owners to lack confidence in their pricing, they genuinely under estimate the value that people attach and what people will be prepared to pay for a great product and great service.  So go on, be a devil test this out and have a little faith you might just be pleasantly surprised.  So the next time someone’s says they want your product or service and all three facets above, smile nicely and say It will be good and you can have it fast but the price is not cheap it will be ………£X and wait and see what they say.
 
If you feel you would benefit from a second opinion call us now on 0161 410 0020
This is just one of the topics we cover in our mentoring service.

  • For information on face to face or online mentoring why don’t you give us a call on 0161 410 0020 and pop in for a coffee and see the ways in which we could help to make sure your good to go for 2016 in the best possible shape. 

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KMA Accountancy
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Hale
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