Thriving Network on 03/23/2018 T Thriving Network
Entrepreneurial dos & donts when it comes to business finances
CASH FLOW DOS AND DONTS
Thriving Network on 03/23/2018 T Thriving Network
Price-Value: The psychology of Pricing
One of the most common challenges facing entrepreneurs and small business owners I work with, is uncertainty around the correct strategy for the pricing of their products and services. This is not a surprise, because unlike costing, which is a more precise and exact science, the psychology of pricing is murky and influenced by many factors. These include the nature of the product or service, the target market, brand equity and brand positioning, distribution strategy, the scarcity or availability of the commodities, right down to factors such as packaging, product quality, originality and even current trends. In fact, the variables are so many that it may sometimes feel like one needs to be a combination of an actuary, cost accountant, marketing guru, MBA and psychic to stand any chance of getting it right. Frankly, it doesn’t need not be that complicated. While I would caution against simply whacking 100% onto your costs (as many do) to arrive at a selling price, if you follow…