I had the pleasure of writing this article for the special edition 2011-2012 “The Thinking Bigger – Guide for Entrepreneurs” publication that was placed on the news stands in October. We understand many of our blog readers are from outside the KC area so wanted to shared it here to help anyone who may be involved with setting product and service price points.
Focus on costs and goals to develop your pricing strategy.
Pricing a product or service is a tricky thing….too low and you’re not credible, too high and you may price yourself out of the opportunity of a lifetime.
Mentors have helped me considerably over the years when it comes to setting the price list. I came from a world where prices were set by finance experts in the corporate world. Firm, fixed, margins, floor and ceilings were all words in my daily vocabulary but estimates, hours and time tracking were words rarely spoken. I knew if my small business was ever going to have a chance of making money then we would need serious help in determining profitable price points.
I surround myself with smart people who ask me hard questions and expect me to spew out ROI, profit percentages and revenue targets in the blink of an eye. My mentors have also helped me establish a pricing strategy that supports our operations model, long-term goals and competitive advantage.
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