The whole category in one page.
START WITH YOUR COSTS
Direct cost per sale, including delivery, packaging, gateway fees, returns and wastage.
Plus overheads, which every sale must contribute toward.
Without those numbers, pricing is guessing.
MARKUP IS NOT MARGIN
A fifty per cent markup is a thirty-three per cent margin.
Confusing them costs money quietly.
FOR IMPORTED GOODS
Price on replacement cost, not what you paid.
Otherwise you cannot afford to restock.
FOR SERVICES
Calculate your realistic billable hours, which are far fewer than your working hours.
Then price on value where the outcome justifies it.
QUOTE VALIDITY
State a period on every quote. Seven days is reasonable in volatile conditions.
ON DISCOUNTING
A discount comes entirely off your margin.
Calculate how many additional sales it must generate. The number is usually larger than expected.
Add value instead. It costs less.
RAISE PRICES ANNUALLY
A modest regular increase is easier than an occasional large one.
Most customers accept it from a supplier they value.
THE TEST THAT SETTLES MOST DECISIONS
How many sales could you lose at a higher price and still be better off?
