How did you price your products or services? Did you just take a stab in the dark or did you carefully workout your overheads plus a desired margin? There are a myriad of different factors a business needs to consider when pricing their products or services. From what the consumer is willing to pay, to the cost of the goods, all the way down to electricity cost in the office. This is an overwhelming task even for the most experienced business owners and greatly impacts the success of your business.
Yes it’s true, 77% of small businesses fail due to incorrect pricing. That’s a scary statistic!
One of the biggest mistakes businesses make today, is not factoring a marketing budget into their pricing structure. It’s a necessary overhead for all businesses, however, many forget to consider it as an immediate cost. How will you grow your business if your not marketing it?
I’m sure you’ve all heard to saying, ‘you have to spend money to make money,’ and the reality is it’s true. Communicating with your audience is how you are going to get your brand out there and make sales.
Now i know what your thinking, how do I find a marketing budget in my pricing? Well, it’s actually pretty simple.
Increase your margins.
I know, I know, a lot easier said than done. But it’s not that scary. You have to make sure the margin you make on current sales will then help you generate future sales.
Do yourself a favour and don’t make the mistake 77% of small businesses make. Increase your margins and grow your business.
– Sara Long, Brand Builder & Marketer