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From Pricing Woes to Pricing Pro: 5 Expert Tips to Avoid the Most Common Pricing Mistakes
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Pricing is a much undervalued business topic. It has a bigger impact on your profit than anything else in your business – yet if you’re like most people you don’t often give it much attention. Studies show time and again that of the four profit levers (price, volume, fixed costs and variable costs), price has the most impact on profit. Yes a bigger impact than your costs. This surprises most people. And it’s counter to how they are working.
Consider for a moment what most businesses do when profits start falling? That’s right they start reducing costs. But if you understood that your prices have a bigger influence on your profit wouldn’t you also give your at least the same attention you do costs?
Of course you would, put that why it’d be silly not to. Logically it makes sense but that’s not what you’re doing.
And if you’re a new business, failing to give pricing your time and energy will make it harder for you to get your business engine running (i.e. build profitability) and achieve your business objectives. t also makes it hard for you to tell the “Profit Story” of your business to investors, potential business partners and other interested in working with you.
The good thing is that most pricing mistakes are avoidable. But first you’ve got to know what to do to not repeat the mistakes your making or the ones you haven’t even thought of yet.
In This Episode
In this episode I’ll share with you 5 of my expert pricing tips to help you avoid the most common pricing mistakes. Let’s take you from pricing woes to pricing like a pro! We’ll first look at 5 of the most common pricing mistakes and then I’ll share with you actions you can take to lessen the chance of you making those errors.
Podcast Highlights
- 0:00 Intro
- 2:17 Mistakes Number One to Five
- 5:39 The Leaky Bucket Concept
- 8:03 Tips to Avoid Pricing Mistakes
- 17:30 Not a Right Strategy
- 25:18 Wrapping it Up
Episode Links
How to do Customer Insight Interviews: https://thepricinglady.com/betheexpert/
How to set Prices group program The Fair Price Formula:https://maven.com/the-pricing-lady/fairpriceformula
Don't go yet. If you're enjoying the show please rate and review. It helps us spread the word to more people and ultimately get more small businesses on the path to sustainable profitability and business success. Thanks for Listening.
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Reach Out, Connect, or Book a Call with Janene
Get started improving your business. Sometimes it’s difficult to know where to begin. I suggest you Download the self-assessment Pricing Scorecard (https://thepricinglady.com/pricing-self-assessment-scorecard/). Get a view of what’s working and what’s not working when it comes to pricing in your business. Figure out where to start making improvements.
Get in touch with Janene. If you’ve got a question that needs answering, a challenge you’re facing or you have suggestions for future topics or guests, let me know. Contact Janene (https://thepricinglady.com/book-a-call/)
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