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The REAL Truth About Business: Business Growth Tips and Strategies for Online Service Providers, Small Business Owners and Entrepreneurs
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Pricing Strategies: 5 Key Factors for Profitable Business Pricing [Ep. 207]
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In this podcast episode, Michelle explores the often controversial topic of pricing in the online business world and offers a fresh perspective on the subject. She delves into two main aspects of pricing: factual data points and the influence of goals, vision, pricing strategies, and communicating value.
Key Takeaways:
- Pricing Considerations for Profitability: To ensure profitability, it's crucial to consider five key factors: time, administrative costs, overhead, software and license costs, and the competitive market.
- Time is a Critical Variable: Many service providers, especially solo entrepreneurs, often neglect tracking their time spent on tasks. Accurate time tracking is essential to determine the true cost of executing a product or offer.
- Administrative Costs Matter: Administrative costs include expenses related to virtual assistants, team members, and software. It's important to calculate and include these costs in your pricing strategy.
- Lifetime Value of a Client: Consider whether your pricing model should be focused on one-time projects with repeat business or a monthly retainer model with lifetime value. The approach should align with your business goals and strategies.
- Raising Prices Isn't the Universal Solution: While price increases can be beneficial, it's not a one-size-fits-all solution. You need to evaluate your pricing structure holistically, considering factors beyond just raising prices.
- Focus on Strategy and Alignment: The key to successful pricing is creating a strategy that aligns with your business goals and feels right for your business model.
Michelle emphasizes the importance of conducting thorough research, tracking time, and aligning pricing strategies with your vision to create a pricing structure that serves both your business and your clients effectively.
If we haven't connected yet - I would LOVE to chat with you! Let's share a virtual cup of coffee and you can tell me all about you and your business.
Connect with me on IG: https://www.instagram.com/michelle_denio/
To learn more about customized 1:1 business growth support packages, visit our website or email michelle@michelledenio.com
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