What goes wrong.
NOT KNOWING YOUR COSTS
The root of most pricing problems.
CONFUSING MARKUP AND MARGIN
A fifty per cent markup is not a fifty per cent margin.
That confusion costs money silently.
FORGETTING GATEWAY FEES AND DELIVERY
On small transactions those can be a substantial proportion.
PRICING ON HISTORIC COST
For imported goods, your replacement cost is what matters.
NEVER RAISING PRICES
Costs rise. Margins erode. The business fails slowly.
DISCOUNTING ROUTINELY
Customers learn to wait.
COMPETING ON PRICE ALONE
A position a small business cannot hold.
CHARGING FOR TIME RATHER THAN VALUE
For skilled work, this undercharges systematically.
NOT REVIEWING
Prices set once and never revisited.
QUOTING WITHOUT A VALIDITY PERIOD
In volatile conditions, a quote honoured months later can be a loss.
TREATING REVENUE AS PROFIT
The most dangerous. Busy is not the same as profitable.
