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Andrew Gregson
Pricing Strategies for Small Business
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Страница 1
PRICING STRATEGIES FOR SMALL BUSINESS
Страница 3
1 Why Is Pricing Important?
2 How to Know If Your Prices Are Alright
Is Price Just a Number?
What Makes Pricing Successful?
What is a decent profit?
Paying the owner
What is a reasonable wage for the owner?
The company and the owner pay their taxes
The business has no difficulty finding the cash to pay its bills
The business attracts the best quality customers who are willing to pay for the value added by the company
Example 1
Example 2
The business generates a reasonable return on investment
Example 3
Table 1: Where Is Your Money Better Employed?
Bids on jobs are planned to leave no money on the table
How Do You Know That Your Pricing Is Not Right? The Hamster Cage Syndrome
But shouldn’t you just cut costs and make a profit at lower prices?
Table 2: Pricing Function And The Net Income Effect — McKinsey and A.T. Kearney Studies
You hate your customers
Your company has a reputation for high prices
Summary Your prices are probably too low if:
Your prices are probably alright if:
3 Typical Pricing Methods in Use Today
Classical Economics and Ye Olde Supply and Demand Curves
Table 3: Supply and Demand
Table 4: Equilibrium
Why is the theory so useless to the average small business owner?
Table 5: Why Do Prices End In 99¢?
Where to Begin? Follow the Crowd!
Table 6: Prohibition Story
Example 4
WAG, SWAG and STICK Methods
Estimating Solutions Estimating software
Estimating books — OEM and industry service providers
DIY (Do it Yourself) Estimating
Table 7: DIY Estimator
The Trap of Customer-Driven Pricing
The Un-Trap of Customer Driven Pricing
Myth Busting: Market Share
Creating a Benchmark — Cost of Doing Business Surveys
Risk and Return
Table 8: Profitability Ratios
Example
Table 9: Kitchen Design Examples
Five Business Wreckers
Summary
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