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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Knowing the state of your financial affairs back to front is one of the best ways to make sure the cash keeps flowing. Staying on top of your finances means you can avoid unforeseen business debt and have enough money to invest in and grow your business.
Written by Rhonda Abrams, featured on Costco Connection Magazine
Small businesses have long been the backbone of their communities. Small businesses support local charities, Little League, food drives, school fundraisers and more. Most small-business owners don’t have to be told to be charitable-they already are. But being charitable is just one part of the wave of interest and increasing demand for businesses to be socially responsible.
In addition to focusing on the bottom line, being socially responsible is a smart part of a company’s strategy for success.
Create an inclusive workplace with fair pay.
Donate a portion of profits. Choose an organization and make it clear a small percentage of your pre- or post-profit sales will go to that cause.
Think and work sustainably. Look for ways your business can reduce waste, consume less energy and lower its carbon footprint.
Donate time. A good way to build team morale as well as contribute to your community is to have your employees volunteer-on paid company time-for a good cause.
Donate products or services to causes you believe in.
Nonprofit organizations are all around you. Each nonprofit has a specific cause that they are working to better. Today, there is a nonprofit for almost any possible cause you can imagine. These nonprofits function on your donations. Without your donations of money or time, some of these causes will never be confronted. Although it is hard to part with our hard, earned money, there are a number of benefits of donating to a nonprofit organization. There is nothing wrong with rewarding yourself with that money you earned but it might feel more satisfying to reward someone else with it. It’s about that proud feeling you get knowing that you have done something that may help others and support a cause you care about it.
A recent study by Harvard Business School faculty and graduate students titled “Feeling Good about Giving: The Benefits (and Costs) of Self-Interested Charitable Behavior,” explores the ways in which charity donations can benefit your psychological, spiritual and emotional well-being. So do yourself a favor, boost your spirits, help a cause, give yourself a tax deduction, and donate.
Did you know that the Emerging Enterprise Center (EEC) is a nonprofit? We are looking for donors like you to help us support our local entrepreneurs. These entrepreneurs in New Castle County will help our local economy grow and bring more business and jobs to the area.
The EEC is designed to provide business support services to entrepreneurs and associated companies in New Castle County, Delaware. The incubator is not merely about a physical building offering lower rental rates, but rather is a program intended to help new businesses succeed to the point of “graduating” from the program within a defined time period. The EEC provides mentoring, educational opportunities, networking events, shared office equipment, receptionist services, and other amenities that are vital to the success of a new business.
Participants have access to customized business and technical assistance geared toward the specialized needs of individual companies. The EEC provides an environment in which like-minded businesses accelerate their potential through interaction, partnerships, joint ventures, and other mutually beneficial collaborations.
Don’t you want to be a part of something that helps New Castle County and Delaware grow?
Donate to the EEC to keep the doors open, lights on, and programs going. Boost your spirit now by donating today.