Pricing Correctly So You Don’t Go Broke

by

GAVID019 – Pricing Correctly So You Don’t Go Broke

November 2018

Summary

Ways Pricing can go wrong:

  1. Make it up
  2. Go off of the competition
  3. Cost plus pricing
  4. Price at cost

Do trials or Beta:

  1. Have confidence in what you are offering
  2. Hard end date for the process-creates bad habits
  3. Getting results-end trials

Retainer: Ways to get to a retainer

Tool to Price Correctly: Pricing Calculator

  1. General Rule of Thumb: CPA: Get a couple of referrals who are successful business owners and choose from them
  2. Profit: 15%
  3. Owners Pay: Pay to operate your business-Salary as the owner
  4. Taxes: 15%
  5. Operating Expenses:
  6. Management-
  7. Labor Cost-Start VA at 12.00 per hour

 

  1. Labor Cost Calculator
  1. Technician
  2. Manager
  3. Labor Cost
  4. Operator
  5. Profit
  6. Owner’s Pay
  7. Tax

Get people to buy a lot higher dollar thing

  1. Offer 3 packages to them-Sell top down and 80% or greater of the time will choose the middle option
  1. High
  2. Middle-Where you want people to land
  3. Bottom

Logic Close

  1. Condition them to answer your questions-not supercritical
    1. How many closes do you get in a month?”
    2. How much do you net per close?
    3. Do I have the math right?
    4. If you could do more closes per month what would that look like for you
    5. Would it make sense to spend/invest  _______ per month would that be a good use of your money?
      1. If they say yes, probably good to work with

 

  1. Promise what you can deliver and deliver it

Things to remember:

**Annually review your prices and raising your prices

**Price Correctly

Leave a Comment