What’s the difference between a CEO and an MD, and why does it matter? Here, Steve Pickering, the ‘unorthodox’ CEO of fast-growing South East independent bed retail chain Sussex Beds, looks at pricing, and how significantly it can impact a business …
Charge more for your products and/or services ... because you’re worth it!
For many years we set our pitch at what we thought was a fair price. We didn’t want to seem greedy or rip people off! However, the issue was that we were not charging enough – and it almost cost us our business when things came to a head in 2014.
It was at this point, following years of mounting losses, we appointed a business coach as a last throw of the dice.
The first thing we were encouraged to do was increase our prices by +10% across all product lines. Which we did. Immediately, this resulted in reversing the decline of cash flow and increasing gross profit from +53% to +59%. This pricing policy was instrumental in turning our business around. It provided breathing room and funds to move forward.
Pricing is one area that business owners and individuals have full control over, yet it is something many struggle with. It is not greed or ‘ripping people off’ to charge enough to provide great service, invest in talent, and deliver quality experiences. It is in the customers’ and clients’ best interests that you price your offerings sufficiently to ensure your business and services will be available and thriving over the long term.
In conclusion, never underestimate your worth, be proud of the services and products you provide, and charge accordingly. Why? Because you’re worth it!
Do you undervalue the great products and/or services you provide? Is it harder to price a service than a physical product?
Discover more of Steve’s thoughts on his blog.
