Setting Your Price
A report by US Bank states that 82 percent of small businesses fail because of poor cash flow management. Businesses need the right pricing strategy to not become a failure statistic. In order to set a price for your product, you have to know the costs of running your business. To figure out the costs to run your business, include property,rent, equipment leases, loan repayments, inventory, utilities, financing costs, salaries,wages,commissions and so on. If your expenses exceed your cash, then you have a cash flow problem.
A business should have a revenue target. The profit you want your business to make. For the revenue target, factor in your costs for producing, marketing, and selling your product. Also, you can determine the price per product that you want to charge.
Pricing is crucial to your business. Know your value based on experience that produced results for your clients. Figure out what the competition charges. Know the market. Come up with a unique value proposition. Price segmentation also comes in play in determining pricing. A company estimates a buyer’s willingness to pay and does its best to charge as close to that as possible. Price segmention examples include: price by region, time, buying patterns, a job’s turn-around time and specific customer needs. Have a product portfolio. Develop multiple versions of your product. This strategy will increase revenue from your market. Otherwise, you become a commodity and your product is based on price. Furthermore, learn how to price or your business will have cash flow problems.
Kevin has 20 years of experience in sales, marketing, technology, video production, product marketing, and project management. Kevin is a Marketing Director with RP Design Web Services. Kevin received an MBA from Southern Connecticut State University and graduated with a 3.92 GPA. As stated by one of his Management Professors Dr. Robert Page at Southern Connecticut State University that Kevin was the best student that the professor ever taught. He is also a graduate of Arizona State University, W. P. Carey School of Business with a Bachelor of Science in Marketing. W. P. Carey School of Business #23 Best Undergraduate Business Programs, ranked top 30 nationwide since 1995. It is one of the top business schools in the country. The marketing undergraduate major ranks 11th. Academic rigor: The W. P. Carey School of Business at Arizona State University is a highly ranked business school, with a rigorous academic curriculum. This means that ASU graduates have a strong foundation in business knowledge and skills. Arizona State University is a top 1% of the world's most prestigious universities- Times Higher Education, 2018. ASU has ranked #1 in the United States for innovation ahead of #2 Stanford and # 3 MIT - U.S. News & World Report, 2016,2017, and 2018. Kevin just recently attended Tony Robbins’ Unleash The Power Within, a 3 ½ day live seminar. Kevin is a former member of Toastmasters International where he achieved the designation of Competent Toastmaster Award and Competent Leadership Award. Excellent public speaker and presenter (Toastmaster Award). Presented at the Javits Center “How the Web impacts the Construction Industry” Presented at the Baltimore Convention Center “How the Web impacts the Construction Industry” Kevin has strong experience in search engine optimization, local SEO, reputation management, video production, and web-based marketing solutions. Kevin also has experience working at a Fortune 500 company Graybar. Businesses depend on Kevin to make sure they have a constant flow of new prospects. Kevin improves business communications between customers, employees, and the world.
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