Navigating the Price Labyrinth: Let's Raise Your Prices
"Is my pricing all wrong?" "Why am I not making enough profit?"
If you've ever found yourself in this predicament, then you're not alone. Many professionals I meet often grapple with these questions. It's not uncommon to find yourself in a constant cycle of underquoting, incurring hidden un-recouped costs, and ultimately not getting paid your worth. Add to that, a constant uncertainty of how to cover fixed costs and whether your business has enough paying clients to be viable.
These issues are, undoubtedly, frustrating and can seem insurmountable. But fear not! It's time to transform your relationship with pricing and profitability. Let's address some of your key concerns:
Problem: My Quoted Price Is Too Low!
Solution: Before you give a quote, make sure to identify and price all the components involved in the job. Use a tool like our "QuoteRight" profit calculator to generate accurate quotes, considering all components.
Problem: What About My Fixed Costs?
Solution: Fixed costs are an unavoidable part of any business, but you can and must account for them in your pricing by understanding where they hide.
Problem: Am I Getting Paid My Worth?
Solution: Pricing should be based on the value you provide to your clients. That’s the start point in pricing, not an afterthought! It’s a product too of understanding what working In and On the business means.
Problem: How Many Paying Clients Do I Need for Viability?
Solution: The number of clients needed for business viability will depend on your costs, pricing, and profit margins. The "QuoteRight" profit calculator can help you identify your break-even point, indicating the number of clients or projects you need to cover costs and make a real profit.
Problem: How Do I Define Viability?
Solution: Business viability is more than just breaking even. It's about consistent profitability, growth potential, and financial stability. Defining viability will depend on your specific business goals and financial metrics.
Feeling bamboozled by all these concepts? Don’t fret! If you're feeling overwhelmed and need to talk it out, I'm here to help. I've navigated these challenges myself and can offer guidance and tools like the "QuoteRight" profit calculator, to help you gain clarity, increase profitability, and get your pricing right.
Your Time Matters (YTM Business Connect) business networking events are also an excellent platform to tackle these concerns. These events, whether one-on-one or live online, offer a wealth of knowledge and supportive network for business owners like you.
Check out our events here: Your Time Matters Events. Let's chat and increase your profitability now. It's time to start getting paid what you're worth!
Leigh Powell is a business strategist and mentor with Your Time Matters and assist small businesses to hone their propositions and attract and convert more prospects. You can book a complimentary chat with him, HERE to help you decide your next steps.
