The first quarter of 2007 is dedicated to business money. January we looked at other ways to bring in money to our businesses. February we looked at cash flow – increasing it and this month, March is about pricing.
There are 2 mistakes many business owners make about pricing.
1 They don’t calculate all their costs, so they don’t have an accurate starting point
2 They aren’t strategic about their pricing.
Here’s a story about a gift shop in the American South West. Just before the owner left on vacation, she wrote a note to one of her staff instructing the staff member to cut the price of some slow moving jewelry in half to clear it out. When she returned, she saw the empty case and asked how the sale went. The staff member said, “Sale? I thought you said to double the price. When I did, the pieces moved like hot cakes.”
Strategy in pricing is an important way to position your business and reflect the value you offer your customers.
For more information about the local chapter see http://businessownerssuccessclub.wordpress.com/.
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