03/05/2019
Are you a victim of this costly mistake many of my clients make?.
When speaking to business owners, especially speakers, coaches, consultants and trainers, I notice that they have put so much thought and effort into their businesses. But then, when it comes to one of the most important factors, I find that most of them simply throw out a guess, cross their fingers, say a prayer, and hope for the best!
I’m talking about pricing.
Quick question…
How do you set the price for your products and services?
If you’re like many entrepreneurs, you probably looked around and said…
Akina Njeri charge 1,500/=
Company XYZ charges 2,500/-
ABC charges 3k
So I guess I’ll charge 950/= and beat them all or let's do katikati (in between) and charge 2k.
Can you relate?
It’s not really the best way to set a price.
Many entrepreneurs rely on this “guess and check” pricing method, that is why a lot of them fall into the feast and famine cash trap with little or no cash to operate and sustain their business.
Over the years I have discovered that generating consistent cash flow and profit to keep a business running and its doors open requires a specific and logical pricing method that can be replicated, monitored, and measured. Unfortunately, the “guess and check” method falls short.
Do you know that every business has a core product that with 3 revenue generating tiers? - low tier, welcome tier and core tier?
This helps you streamline your target audience and lead generation activities to attract qualified leads that convert into profitable paying clients throughout the year.
The guess and check pricing method may have been producing some results for you but the question that begs to be answered is ...
can it generate ENOUGH revenue to meet your business and personal obligations REGULARLY, including a regular salary for you and profit for the business?
Can it be replicated, monitored, measured and improved to produce consistent cash flow and profit?
At UNIQUE LENDING COMPANY LTD, we offer financial advises to our customer on Financial management, how to become profitable and competitive in your business among other.
Visit our offices and talk to us.