Smart Pricing

About this book

The wrong price does not show up on your bank statement straight away. It turns up months later, as a thin margin and an unhappy customer.

Here, price stops being a hunch and becomes the result of a calculation you can redo and defend.

What you will learn

• Separate fixed cost, variable cost and the cost of saying yes
• Work out the margin the business needs, not the one that sounds healthy
• Test price bands without losing the customers you have
• Build product and service tiers that make sense
• Raise prices without wearing out your existing base

Contents

1. Why most people get the price wrong
2. Finding your real cost
3. Margin: what the business needs
4. Perceived value
5. Bands, bundles and tiers
6. When and how to raise

Specification