One of the biggest problems for smaller businesses is how to go about setting prices for their products and services. And much of the problem actually comes from a lack of self belief of the business owners in the value of their product to their customers.
The most valuable piece of advice that I have ever given was to a school friend and so was given away for the price of a pint of beer nearly 20 years ago. The advice was simple, direct and clearly explained.
Over a period of less than 10 minutes, I explained how other businesses went about setting prices and how much they charged for their time. We discussed that his process took a relatively standard length of time and could be packaged to a standard fee, so he wouldn’t have to remember what he had quoted, and this charge should more than cover all of his overheads.
The problem was that my friend did not know the value that other people placed on his expertise. Fortunately for him, he was in a market with a limited number of suppliers, due to his qualifications, and virtually unlimited supply of potential customers.
He resolved to try out my advice and when we next discussed the position he had taken the bull by the horns and carried the advice through. With this new confidence he pushed on further than either of us had thought would be possible.
The advice was simply. PUT YOUR PRICES UP! And he had, by six times!
Do not to be limited by your opinion of the value of your work. Put yourself in your customer’s shoes when setting prices and sell the value of all the problems that you will solve for them, the time saved and other benefits.
Setting Prices – What should you do now?
Call me NOW to discuss any problems you have with Setting Prices . Or complete your details above and I will share some insights by sending you my report “Boost Your Profits” or email: brian.russell@profitabilitygroup.co.uk.
BRIAN RUSSELL FCA
Director
Tel: 01661 872004
Brian Russell FCA is a Chartered Accountant specialising in business development particularly within small and family run businesses maximising the returns available.