PROFITABLE PRICING Mark Wilson from Framiac ran a pricing and upselling webinar with Jon Price last month. You can view the webinar link and below are Mark’s views on the principles of best practice.
In my experience, the price we think a customer will pay does not correlate to what the customer will pay. When I first started my business I had little money and therefore priced to what I thought I could afford. Later, after realising I was struggling to pay my bills and afford to live, I started lifting my prices. This was scary, how many people would reject my quotes, would the business I invested so much into survive? What I found was that there was no change in rejection. Some people rejected my prices, but that happened when my prices were lower anyway. Increasing my prices did two things; it allowed me time in the business, I wasn’t flat out making frames all day just to pay the bills, and soon I was able to afford a part-time employee. This is when I started focussing more on building a consistent profitable pricing model. I wouldn’t say this was an easy process, it took some research, work and contemplation. It required finding a workable system to which I could apply my model. Computers in the early ‘90s were becoming more mainstream and luckily for me I found the perfect solution.
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