Listen to the Podcast. Episode 6162019
During May we covered pricing. You can visit all of the blogs on pricing by clicking on the name of the blogs below to read more.
Creating a package includes adding the various pieces to your package. What I have covered in the previous blogs are just the basics. As you grow, other costs add to the pricing; such as operations. Your growth will come out of your profit from reinvestment
Pricing is a challenge for many business owners as most want to find a balance that will give them profit but is also fair and comfortable for their customers and clients. I know it can be a struggle to try and find that right price point and many business owners have learned that even after you calculate all of your margin percentages for markup, you can see yourself not sticking to your pricing to get the sale.
I know the feeling of getting a sale or someone saying yes to an offer is great but unless the payment is received or purchase made it's not a sale yet. So before we think we have the right price, go and make sure we are pricing correctly. Remember, there are various pieces to your pricing.
Once you have your markup, you can include them in your pricing. Your pricing should include COGS or COSS (and many times it will include both), Labor Cost (your hourly rate and the hourly rate of anyone you need to pay for doing the job), Your profit and business expenses markup (business expenses markup will include the discount).
Now include multiple services once you know what you need to earn for each service or job. A package may consist of bookkeeping and payroll for me. Each is priced differently and I add them together for the total package price. I determine if I can offer a discount and I offer a discount off of the total package.
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Author: Y. Michelle Coard, BA in Accounting, Accountant, President, Profit Strategist
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