Are you guilty of not charging enough?
Jon here from Small Fish.
Are you guilty of not charging enough? It’s a crime you know, to not charge enough.
Now, I run the risk here of not stirring up controversy about this so let me be clear. I don’t mean that I think you should be ripping people off and overcharging.
But I do mean that many small business owners feel price pressure from your customers as stronger than it actually is and charge less than you could.
And that, in turn, often means that your business runs on skinny margins and is less comfortable for you. Skinny margins means poor cash flow and poor profits.
So there’s a real benefit to considering carefully whether you can and should be charging more.
I’m not stupid enough to think that everybody can charge more but, in my experience, more than 60% of the people I’ve worked with have been able to lift their prices without any backlash.
I’ll say that again. Without any backlash!
OK, not try imagine this – if you could raise your prices by 10% without any backlash (so no drop in revenue) what difference would it make to your business?
10% more revenue, obviously but it’s a whole shitload more net profit isn’t it?
If you have $1m in revenue and you make a net profit of $100,000 (that’s a 10% net profit) and you earn an extra $100,000 by charging more without any backlash – you get the whole lot don’t you? You double your profit to 20% and $200,000!
So don’t dismiss this idea – don’t let your fear get the way of doing a proper and thorough investigation into whether you can squeeze your price up.
If you need help, get yourself a business coach. You know where to look.
Step 1 in charging more – be bit braver, don’t let your fear ruin your business.
There are four ways you can engage with me:
1. Subscribe to these emails and get them once a week in your inbox so you never miss a video from me.
2. Join the Trades Business Toolshed Facebook Group where you can watch these videos, ask me questions or talk to your peers.
3. Attend my next Tools Down workshop.
4. Book yourself a 10-minute chat with me. We’ll talk about whether coaching is right for you now and if it is, we’ll go further into the process before you have to make your mind up.
See you later.