{"id":560962,"date":"2021-03-06T05:46:03","date_gmt":"2021-03-06T10:46:03","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbgreenbay\/is-your-business-charging-enough-for-goods-services\/"},"modified":"2022-01-31T12:41:51","modified_gmt":"2022-01-31T17:41:51","slug":"is-your-business-charging-enough-for-goods-services","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/is-your-business-charging-enough-for-goods-services\/","title":{"rendered":"Is Your Business Charging Enough For Goods & Services?"},"content":{"rendered":"
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A small increase in what you charge for your goods and services can make a tremendous difference to your bottom line.\u00a0 The fact is that many businesses could charge more for their goods and services than they do, but fail to do so.\u00a0 Owners often do not realize the great value of charging just one-percent more.\u00a0 In this article, we\u2019ll explore how charging even slightly more can dramatically impact your business.<\/span><\/p>\n

Let\u2019s consider a hypothetical example.\u00a0 A business owner tells a potential buyer that he or she could safely increase their prices by 1.5% and do so without the price increase causing any negative impact to sales or business disruption.\u00a0 The savvy buyer quickly realizes that the business, which has $70 million in sales, is leaving $1 million dollars on the table by not increasing its prices by 1.5%.\u00a0 A smart buyer realizes that after purchasing the business, all he or she has to do is institute this small price increase in order to achieve a sizable increase in profits.<\/span><\/p>\n

In his best-selling book <\/span>The Art of Pricing<\/span><\/i>, Rafi Mohammed explores the often-overlooked area of pricing.\u00a0 He keenly observes that one of the biggest fallacies in all of business is to believe that a product\u2019s price should be based on the cost of the product.\u00a0 In <\/span>The Art of Pricing<\/span><\/i>, Mohammed points to several examples.\u00a0 One comes from the restaurant industry.\u00a0 He points to the fact that McDonald\u2019s keeps entr\u00e9e prices attractive with the idea of making up profit shortfalls in other areas, ranging from desserts to drinks and more.\u00a0 Or as Mohammed points out, McDonald\u2019s profits on hamburgers is marginal.\u00a0 However, its profits on French fries are considerable.<\/span><\/p>\n

Mohammed\u2019s view is that companies should always be looking to develop a culture of producing profits.\u00a0 He states, \u201cthrough better pricing, companies can increase profits and generate growth.\u201d\u00a0 Importantly, Mohammed points out that it is through what he calls \u201csmart pricing\u201d that it is possible to extract hidden profits from a business.\u00a0 Summed up another way, pricing couldn\u2019t matter more.<\/span><\/p>\n

All too often business owners, in the course of their day-to-day operations, fail to place sufficient importance of pricing.\u00a0 Any business looking to achieve more will be well served by first stopping and taking a good look at its pricing structure.\u00a0<\/span><\/p>\n

Likewise, buyers should be vigilant in their quest to find businesses that can safely increase prices without experiencing any disruption.\u00a0 At the end of the day, small changes to pricing can have a profound impact on a company\u2019s bottom line.<\/span><\/p>\n

Copyright: Business Brokerage Press, Inc.<\/span><\/a><\/p>\n

354288095\/BigStock.com<\/span><\/a><\/p>\n

The post Is Your Business Charging Enough For Goods & Services?<\/a> appeared first on Deal Studio – Automate, accelerate and elevate your deal making<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A small increase in what you charge for your goods and services can make a tremendous difference to your bottom line.\u00a0 The fact is that many businesses could charge more for their goods and services than they do, but fail to do so.\u00a0 Owners often do not realize the great value of charging just one-percent […]<\/p>\n","protected":false},"author":2,"featured_media":560964,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5,3],"tags":[],"class_list":["post-560962","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buyer-articles","category-seller-articles"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/comments?post=560962"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560962\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media\/560964"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media?parent=560962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/categories?post=560962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/tags?post=560962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}