One of the most important parts of your marketing strategy is having a pricing strategy. We often find that businesses price every job from scratch and re-invent the wheel every time which can be hard work and take time and effort away from doing the day job
What pricing structure do you need to be profitable? Pricing needs to take into account production costs plus profit margin and perceived value.
One of the common mistakes businesses make is that they under-price themselves as they don’t take into account the value of their own time and the value of their experience and expertise
Another factor to consider is where you sit in the marketplace versus your competition. An easy way to consider this for your business is are you an Aldi or a Waitrose? If your offering is of basic quality where volume is the key money generator then make sure your pricing strategy reflects this. Alternatively, do you offer a more specialised quality offering that should sell at a higher price? Another useful analogy to consider when building your pricing strategy is that if you were buying a Rolls Royce you would not expect to pay mini cooper prices.
Refer back to your competitor analysis and ensure your pricing reflects your offering by comparison to your competitors. It may not be the right strategy to always undercut the competition. If your offering is of greater value, then price accordingly.
Why not consider building a pricing matrix that you can refer to when you get an enquiry to easily build a cost proposition based on a simple combination of factors including raw materials, time, staff implications etc.