One of the big questions a small business owner will ask is how to create a pricing strategy built for profit-making. Often we see one of two options. 1) a business’ pricing matches what is currently in the market or 2) it is the cost of goods with a markup added on top.
Instead of running with either of these options, what we recommend is to analyze your operations. You need to be fully informed of the cost of doing business. Not just an estimate, but the true cost of running your business. To obtain a proper pricing strategy your sales must exceed operating expenses at your bottom line. If a price must be fixed than your operations need to be reevaluated so operational costs do not exceed income.
What strategies have worked for your business?
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