Courtesy of SCORE.org
One of the most important decisions you can make as a business owner, a marketer, an accountant and a business strategist is determining a price for your product or service. The price you choose to set communicates value, market position and customer expectations. From a backend perspective, it also determines the ever-important potential of profit.
If you’re working to develop the perfect pricing strategy for your new product or service or if are re-evaluating your current pricing strategy, take advantage of the free resources offered by SCORE. SCORE exists to provide expertise that is crucial to helping small businesses make important decisions like pricing determination.
Resource 1: Pricing for Profit: Understanding Gross Profit, Margin & Markup
This online workshop, presented by SCORE mentor Larry Hunt, will set a strong foundation for your pricing knowledge. You’ll learn standard pricing techniques, the difference between markup and margin and how to calculate your gross profit. For existing products/services, this session will teach you how to identify the current stage of your offering’s lifecycle and how to optimally price in this phase.
Resource 2: Pricing Strategies for Small Business
In this article, Janet Attard, a frequent speaker and author on small business issues, addresses important pricing questions like, “What are some ways to find out what competitors are charging to develop your own pricing strategy?” and “When are discounts NOT a good start-up strategy?”
Resource 3: The Total Cost Picture
Are you fully aware of all the factors that should be taken into account in your pricing? SCORE mentor Ashesh Banerjea clearly and concisely lays out all the considerations in this blogpost. Also check out Ashesh’s explanation of 5 pricing models.
Setting appropriate and competitive pricing and re-evaluating it on a regular basis are so critical to small business success. SCORE provides free online workshops, articles, templates and blogposts to educate small business owners on this and all business topics. And SCORE mentors provide free one-on-one business mentoring for any issue you are facing in your business. Harness the knowledge of business experts to your best advantage. Connect with a free SCORE mentor today.
