Business Planning Resources

Many service providers simply pitch their price somewhere near the middle of the prevailing market rate. But it makes sense to calculate your overhead costs and hourly rate to work out what price you should charge to ensure the income from your business meets your expectations.

There are a number of ways to arrive at the price to charge customers. Regardless of which method you use for pricing your product, you’ll need to know what it costs to supply your product to be sure you’re able to operate at a profit. Alternatively, you’ll need to know the cost to your business if you plan to use a product as a loss leader.

Getting paid correctly and on time by customers can be a constant frustration for business owners. Communicating your terms is the best way of making sure you aren’t out of pocket – or are left chasing debtors.

Most business owners receive plenty of well-intentioned advice and ‘helpful opinion’ from family and friends. However, good business advice given from commercial experience is another matter entirely.

How you price can have a dramatic effect on your sales, cash flow, and profit margins. Your pricing strategy will determine how customers see your trade business in the marketplace – naturally comparing your prices with your competitors.