No matter if you’re running a service-based business, retail shop, or manufacturing operation, keeping your pricing updated is key to staying profitable and sustainable. Let’s break down what this means for all you service-based businesses out there.
Service-Based Businesses: Stay on Top of Change
For those offering fixed fees or retainers in areas like bookkeeping, design, or consulting, pricing often doesn’t keep up with the increasing workload. Here’s what you should watch for:
- Are you dealing with scope creep where extra tasks have become standard?
- Is your client’s business growing, demanding more resources?
- Have you adopted new tools or technologies?
If your expenses have gone up, consider a modest 5 to 8 per cent price increase to keep your margins healthy. Remember, you’re simply protecting your business, not ripping anyone off.
Retail Businesses: Competing and Profiting
Retail may seem tightly competitive, but that doesn’t mean you can skip price reviews. Ask yourself:
- Have supplier and shipping costs risen?
- Are labour or merchant fees higher?
A 3 to 5 per cent price lift can maintain your profits without scaring off your customers. Look into bundled offers or adjust prices on slower stock for added flexibility.
Manufacturing Businesses: Managing Costs Smartly
Manufacturers face shifts in material costs and logistics. If you haven’t revisited your prices in the past year, chances are you’re eating costs. Check your unit costs, factor in labour increases, and communicate adjustments to distributors early on.
Dealing with Pushback: Knowing Your Worth
Raising prices might invite some pushback. It’s time to see who truly values your work. Clients who appreciate your service will understand, while those who don’t might move on, and that’s okay. Profitable relationships are mutually beneficial.
Your Next Steps: Making the Review Happen
Schedule a day this week to tackle your Annual Price Review. Use tools like the pricing spreadsheet that I use and recommend. It’ll help you compare this year to last, factoring in growth and team contributions. If you’d like the spreadsheet, shoot me a DM or email.
It’s time to reclaim your margins and boost your energy. Be the leader your business deserves. If you found this helpful, share it with a fellow business owner. Leave a quick review or tag me on socials with what you learned. CEOs don’t hope for profit, they plan for it.
Until next time, back yourself, raise those prices, and run your business like it’s built to last. See ya!
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