Thoughtful Thursdays – Do the math…
…again and close the internal sale.
A few weeks ago we talked about persistence. Today’s thought concerns my persistent view about leaving your money on the table and is directed for the most part to new business owners of small and micro businesses.
It causes me much pain to see businesses set pricing below the market without any apparent reason other than the fear of losing a sale. The key words are below the market. Today I plead with you to re-consider before deciding to charge less fro your products and/or services.
At a minimum, consider the following:
- Business overhead
- All business operational costs including administration, insurance, professional services, association dues, communications,, transportation, salaries
- Commercial costs – marketing, sales
- Costs of sale
Add it all up – are your prices covering all costs and generating a profit? If not, then ask yourself why you want to lower the price in the first place.
In a recent meeting my client and I went through the above exercise. As it turned out we determined the only person who had a price objection was my client. The obstacle was in the internal sale.
Please do the math, close the internal sale and be profitable.
Good selling,
Richard
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