Continue reading "How to price your product or service"
A major consideration in the finances of your business is where you price your product or service. If you price your product or service to low, then your potential customers, may discount the value of it, and turn elsewhere to buy. Conversely, if you price your products to high, your customers may look elsewhere, for a better deal. Either way the finances of your business can be seriously affected. There are several different factors that should take into account when pricing your product or service, to help insure that the finances of your business are healthy. Here is what you need to know about how to price your product or service-
Continue reading "What is variable costing?"
Every business owner has different struggles and challenges with their business. Setting up the prices for your products and trying to earn the right amount to make your business grow and develop stronger is not always the easiest thing to do. There are different ways in which you can figure out how to price your products in a way that it will generate the income you need for your business. What variable costing will do is allow you to see what the customer can afford to pay for your products and it will help you to see where you need to sell your products so that you don't end up taking a loss. Making a decision about the prices you need to charge for your company is vital to the marketing strategy but it is also important to the business plan you present to your lenders when you are in need of financing.
Continue reading "What is Activity Based Costing and when should you use it?"
There are so many improvements that need to be made to businesses in order to help them survive. One of the methods that you have to consider using is a production processes known as Activity Based Costing. It's one of the best ways to make technical improvement to the company and to also reduce the manual labor costs you have to deal with.
What is the cost of manufacturing your products and services? You need to consider using absorption costing in order to get a better picture of how everything ties together and to see how the indirect costs will impact the direct manufacturing costs. Every product you sell needs to break even. When the costs are unable to break even it leads to a financial downturn for your business as you are unable to come up with the money necessary to keep your business afloat and to survive properly.Continue reading "How does absorption costing work?"
"How much do you charge?"
If ever a question was designed to bring up all your issues around confidence and self-esteem, "How much do you charge?" is the one.
In my copywriting classes, pricing bothers students, and it bothers me too, because there's no clear instruction that I can give them. How much you charge depends on many factors, including:
* your experience;
* the client and his/ her budget;
* your current financial situation;
* your desire to do the work (or your lack of desire);
* how easy the client is to work with --- does he/ she pay on time, or do you have to send several reminders, does the client micro-manage projects, does client have a "know it all" mindset?
=> VITAL: VALUE YOURSELF, AND YOUR TIME, AND OTHERS WILL VALUE IT TOOContinue reading "Freelancing: Setting Your Rates And Raising Your Rates"
How many times have I heard literal horror stories from Internet business startups? Too many times to count! I get emails from those who just simply can't seem to make a living online. They've tried everything (according to them) and are still struggling to make ends meet.
At some point, the "conversation" always turns to price. That's where I find a lot of online business people making their mistakes. The common mindset among Internet business startups is that you have to keep your prices rock-bottom low in order to attract customers.
Nothing could be further from the truth! Raising your rates (in some cases) can actually increase your business. How so? Here are several reasons....Continue reading "Raising Your Rates Can INCREASE Your Business"