Pricing. It's one of the biggest challenges business owners face.
Whether you're selling products or services, getting your pricing right is crucial for building a profitable business.
Let's explore how to price your offerings with confidence - and without undervaluing yourself.
The Hidden Cost of Poor Pricing
Many business owners fall into these common pricing traps:
Setting prices based on what competitors charge
Forgetting to factor in all business costs
Pricing based on what they would personally pay
Offering discounts to make quick sales
The result? Working harder than necessary while watching your profits shrink.
Finding Your Sweet Spot
Let's look at some real numbers with two different business examples:
For service-based businesses: Say you're a social media manager aiming for £2,500 monthly. If you can realistically handle 5 retainer clients, each client would need to bring in £500 to reach your goal.
Does that feel achievable with your current packages? If not, you might want to explore adding content creation bundles or strategy sessions to supplement your income.
For product-based businesses: Say you're making wedding favours. If you're selling them at £4 each and aiming for £2,500 monthly, you'd need to sell 625 units monthly. That's about 21 sales every day.
Is your current marketing strategy set up to achieve this? Are your profit margins healthy at this price point?
Uncovering Hidden Profits
Before raising your prices or chasing more sales, look for profit opportunities in your current business:
Review your actual costs (including those forgotten subscriptions)
Identify which products or services give you the best return
Track time spent on each client or product
Monitor which marketing activities bring the best results
Quick Wins for Better Pricing
1. Package your services strategically
Create different tiers (like a social media manager offering basic posting, full content creation, or VIP strategy packages)
Bundle complementary offerings (such as adding monthly strategy calls to your service packages)
Add high-value, low-time-cost elements (like templates or guides)
2. Review your product pricing
Calculate all costs (that £4 wedding favour might actually cost £2.50 with packaging)
Factor in seasonal variations (wedding season versus quiet periods)
Consider bulk buying opportunities for materials
Signs It's Time to Adjust Your Prices
Watch for these indicators:
Your costs have increased (those scheduling tools aren't getting cheaper!)
You're consistently booked out three months ahead
You're working longer hours than you'd like
Your bank balance isn't growing despite steady sales
Taking Action Today
Start with these simple steps:
1. List all your current offerings and their prices
2. Calculate the actual time or cost involved in each
3. Identify one thing you could adjust this week
4. Review your results in 30 days
Ready to Transform Your Business Finances?
Want to dive deeper into maximising your profits? The Profit Accelerator programme helps you boost your bottom line in just a few minutes a day - without increasing your sales or working longer hours.
Learn more about the Profit Accelerator here [https://www.flourishbookkeeping.club/Profit_Accelerator
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