Let's face it, the products or services offered by the pricing is a nightmare.
路 km from customers out of 100 say - hey this is very cheap, and I will pay you much more than that!
路 How often do you think that in order to respond to the competition you have to lower your prices?
路 how much you do not really understand what the total cost of doing business is like getting a sale, and production costs of the product or service, and the costs of after-sales support, recovering from total business expenses?
So how do you price the above?
Below are five basic points of reference - they're for "V" to the speed of business you want to generate.
(1). Vital
This is what you need to charge to recover the total cost to run your business. It's based on numbers and will be a combination of:
路 fixed costs: they described as fixed because they do not usually change with the work that 're-size it. Usually this will be your premises, information technology, and manufacturing processes and often your employees as well. Lower is better and outsourcing is a good way to contain these costs. Thinking of renting office space, using cloud computing, and temporary staff and temporary contract.
路 variable costs: change depending how much work you are doing. This is like cholesterol, the "good" because there is a relationship based more direct evidence between what you produce and the price they charge. However, it may mean that the implementation of this work may incur additional costs to stock and work and funding.
Message: you draw but do not get paid!
2. viable
This includes all of the above, but now you are able to build in the margin over direct costs begin to provide a return for you. This includes time spent in the business, and the cost of the capital they have invested business risks taken.
NOTE: It is very likely that you will be able to restore 'premium stress "even personal sure to keep the work / life balance of good and build a good support network.
message: You draw and you do get paid!
3. The size
this is a difficult area.
post. Why? because most business is not necessarily good business!
Let's explore this little bit more.
路 If you were not've got a good understanding of the true costs of your - this is not uncommon for many companies because it worked out, "once" when I started up - but did not provide the time to look into it again - then it is very likely that you do not have to deal with your core costs.
路 issue here is not the volume of sales, but profitability. Are you sure that every 拢 1 spent to get 拢 1 and lot back to cover all the vital things that we talked about earlier.
路 many companies fall into the trap when the pricing of the volume of business of ignoring fixed costs on the grounds that they are already covered by what they are doing now so they can be ignored. But what if you do not get to work to cover the fixed costs? Ouch!
message: You do more work, but you make less profit!
4. Vision
If you start a business and then awareness and understanding of the potential and desire to what you have to sell will be minimal.
. What you need to do is to create a demand and the good news is - assuming that you have what people want - that with the advent of social media this could probably be done in a low direct cost way (as in spending money ) but not low-cost method of indirect (as is the case at the time).
Post Why? Because you will need to blogging, twittering, on Linked In and Face Book and others. And try to get a handle on "opinion leaders" - those people who will be friends and this is a 'must have. "
Why is this important? Because the price which can charge is directly affected by the economic model of "supply and demand". therefore, the more you can create a demand for what you have and the higher prices you can charge if the display is in any form is prohibited.
message: more the demand of the same costs base means more profits.
5. value
so far, so good. I hope you have found this logic to some extent. We are now in a world of fairies and fantasies. that because some of the stuff out there is not necessary that there should be no relationship between what it costs and what you charge.
Post Why? because the value - as opposed to the cost - is the rule of buying individual this done may be with prestige, exclusivity, status, being in the first 100. the good news is that these people will not be price sensitive so you can charge almost what you want - within reason.
do not make any assumptions about where the value is in the buyer's eyes. You can test this in a number of ways. Orthodox model is the pre-launch market research and I would like to mix this with a close review of who actually bought the product and why. Carefully examine what this tells us about buying motives and perceptions of the value of the most important value is delivered.
message: Value is in the eye of the buyer.
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