Chapter 2 – Financial Control – Rule your money
This is part of the ‘How to’ coaching series. An ongoing series of activities to make your business successful. Follow it step by step and see positive results as you develop a robust business model, set on a solid foundation.
Activity 32 – I ensure that all products/services I sell make a Profit
Once you have put the financial measures in place for your offerings, you then need to determine that you ensure you DO make the profit targets you’ve set.
I’ve come across many instances where people are not necessarily that confident on their prices; and this often leads to giving it away. Have you ever done that? Have you told yourself that it’s ok? When did the checkout person at a supermarket say ‘would you like that item cheaper’? No, of course not. The price is the price.
The ‘How to’ bit:
Before marketing and selling your products/services, make sure you are comfortable with the price – understand the value! Do some research, if you have direct competition, see what the market is charging. If you have a new category, charge what you like. The market will tell you if you have it right. Just think of the iPad. When Apple launched it, many experts said it was doomed, a white elephant, and much criticism. Well, now we know that it has been, and continues to be, a great success. The cost was seen as prohibitive. Now, it’s just the price you pay if you want it.
One good way to help maintain your price is to write it down. One your website, a menu, a price list. That way, you and your customer know the price.
It may be that you put offers together, such as bundles. Though make sure that each component any deal still is making a profit.
Suffice to say, if you have products you are making a loss on, why are you selling them?
If you would like help with ensuring that all your offerings are making a profit, Contact Us…