There is so much more to pricing than CODB formulas

published8 months ago
1 min read

One thing that causes so much uncertainty is pricing.

It's also a subject about which there is a great deal of bad and damaging advice about.

I've seen following bad advice kill fully booked businesses dead in the water.

Quite literally go from fully booked to zero bookings.

You see there is so much more to pricing than some simple formula like your Cost of Doing Business.

So let me be ultra clear on this:

There is no one way to set your prices and fees.

There are many factors that each individual business has to consider.

How you price your services and products will vary depending on the stage your business is at and your objectives.

The very first thing is to be strategic and know your most important objective.

Every business is different.

Factors to consider when deciding upon your prices:

  • stage of business
  • ability to deliver in even the most difficult conditions
  • levels of client service
  • business objectives at that time
  • rate of momentum in the business
  • cost of doing business
  • costs per sale
  • your market
  • your ability to market effectively at any given price point
  • reputation in the market place
  • your skill sets
  • levels of self-belief and confidence

I've probably missed some, but this should give you a good start.

If in doubt, start with lower prices that you believe in and feel comfortable charging, then make frequent incremental price increases as your momentum grows.

The key thing is:

Stop worrying about what everyone else is doing and figure out what's best for you and your business.

How do you go about setting your pricing?

Until next time,