One of the most common problems I come across amongst SME business owners (and, in fact, businesses of any size) is deciding how much to charge customers for their products or services.
It’s an important problem to solve as it can make a huge difference to how profitable a business will be. Price too high and you won’t find customers. Price too low and you won’t make money – and perhaps put off potential customers because you are too cheap.
You may well ask how can a product or service being cheap put off customers? Well, if you are advertising a high quality offering to customers, but pricing too low, they will not trust that it actually is high quality.
The place to start when reviewing your pricing strategy is with your costs. If you don’t know with enough detail where the costs in your business occur – as a direct result of producing your sales or as overhead expenditure – you will not be able to price effectively.
As we know, to be profitable a business must at least cover its costs. So knowing all the business’s costs will help to ensure that products and services are priced in a way that covers these costs.
Pricing is such a fundamental skill for all business owners, that I have decided it will be the topic for my first business owner masterclass on-line course – which is now available on the Qintil learning platform. (https://courses.qintil.com/Courses/MiPsmeanbusiness/business-owner-masterclass-pricing).
I have come to think that online learning is a great way of sharing expertise to a wide audience. The tools available to help create an engaging and effective learning experience are getting better and better.
If, like me, you have been in business for a long time and now feel you have want to share your knowledge with an audience wider than your immediate client base, how about having a go at creating your own online course?
Personally, I use a tool called Easygenerator. It is very easy to use and you can upload videos and audio files as well as the usual written content. You can try it out for free and see if you like the quiz templates provided and the format of the courses.
I have certainly enjoyed playing around with what I can produce for business owners who need inexpensive help in key areas of their business finances.