Put Your Prices Up – Part 2

A few weeks ago, I wrote about the importance that pricing plays in every business and also about the reluctance that most small businesses have in considering, let alone, putting their prices up.

Recently I have been becoming more aware of the importance that gross profit margin plays in the valuation of a business. Gross profit margin is dictated by optimising the selling price and minimising the cost of purchase or cost of production. So failure to address pricing can impact a small business both immediately by foregone profitability and ultimately by damaging the valuation.

If businesses were to really become strategic and focussed on their pricing philosophy I wonder what the impact would be. Most businesses are apologetic and reactionary in their pricing thinking. Why?

In my experience the biggest single factor in a business’s pricing stance is confidence. The more confident we are, the higher price we are likely to ask. The higher price we ask, the higher price we are likely to get.

The questions for today are the same as they were last month.

So the questions for today are:

• Are your prices in the top quartile for your industry?
• If not, why not?
• What changes need to be made to get them there?
• When are you going to do that?

Many successful business owners eventually hit a wall on growth and struggle to climb it alone. When you work with me you get a fresh perspective, a solid plan, and customised coaching so you can grow and scale your business safely and at speed.

To check whether I can help you on that journey https://calendly.com/iankinnery/canweworktogether