Pricing for Fun and Profit
"Danny said that a pricing tactic I shared in this webinar "is the most important part everyone needs to hear". While it is true that this tactic is important, I feel that the most important thing that was shared is the strategies required to set prices responsibly and professionally. 100% of your profit comes directly from the prices you charge. If you'd like (or need) stronger profits now and into the future then listen to this webinar to learn the strategies and tactics to become a Pricing Professional."
- Here are just a few key points from Sid on pricing:
- Price is the first indicator of value.
- Our customers won't pay more until we earn more.
- 100% of our REVENUE and PROFIT comes from the price of items you sell.
- Profit should be the first thing we build into our pricing formulation.
- We are a specialty retailer.
- We build Value through Product + Store Environment + Service.
- Replace the word (or practice) MARKUP with GROSS MARGIN calculations.
- Gross Margin is amount added to total cost of goods (cost+wages+operating expenses).
- Determine PERCEIVED VALUE price.
- Test & experiment with your prices, early and often.
- Determine your Gross Margin Floor (minimum).
- Earn your price - add more value. (product+atmosphere+service)
- Earn more in ways customers don't notice.
- Consider multiples pricing strategies. (see chart above)
- Multiples pricing strategies helps set new (higher) regular pricing.
- Price products professionally, responsibly, build value.
- Maximize your profit potential.
Want to dig into more of Sid's presentation? Here's two ways to do it:
Additional Resources: Pricing for Fun and Profits
Download PDF of slides - CLICK HERE
View a recording online of the complete presentation - CLICK HERE
A special thank you to Sid for offering these ideas and everyone who participated in this GROUPtalk-Live. Watch for other GROUPTalk-Live sessions featuring other Group Service Providers!
