What should I charge? A common question for many small business owners. Charge too little and profit suffers, charge too much and sales decline. When it comes to pricing your products or services, there is no right or wrong answer. But, your long-term growth and profit will ultimately reflect the decisions you make. So here are common mistakes to avoid AND some things you should consider to maximize your bottom line.
Let’s start first with the common mistakes small business owners make when it comes to pricing:
One of the questions I’m often asked is ‘how much should I charge for a product or service’. This is typically the starting point for most discussions on pricing. But the question you should be asking is ‘How much do customers value the products, services or other intangibles I provide’.