Entrepreneurs often set their prices too low, and it can take years to get them to the right level. So how do we increase our prices without losing customers?
By David Madié, founder and CEO of GrowthWheel International Inc.
When we as entrepreneurs are not making enough money it may be because we are not setting the right prices. Generally, we are good at producing and delivering products. However, it is just as important to be good at running a business and
getting properly paid for our work. So to run a sustainable business and get the most from it, somewhere along the way we need to learn how to become a good salesman or saleswoman. How do we go about this?
Why are our prices too low?
There are various reasons why we set our prices too low. A frequent “beginners mistake” is that we think we make enough money. We often forget about all the less predictable expenses in the budget or we underestimate how much time we spend on each task. Perhaps we forget that it is not enough to get a decent salary. The company needs to make its “own” money to be able to invest in product development, marketing etc. To tell the company’s earnings from our personal income may be the first step towards setting the right prices.
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