Figuring out how much to charge for your product or service can be difficult regardless of the type of business you’re in. That’s one reason I’m so excited about my new Profit Potential tool! This tool asks a few simple questions about your business or business idea, and within minutes, you can see your Profit Potential for each month and for the entire year!
But even once you set your price, a common scenario can occur:
For example, let’s say you bake cakes, and a customer emails you for a price quote on a small white cake with decorative balloons.
You tell them it will be $14.99 plus tax. They agree and pay for the cake.
Two days later, you get another email asking if you can make one small change. They want the cake to be half chocolate and half white cake with fresh strawberries in the center.
“No problem,” you say.
A day later, they email again. This time, they want the cake to be sugar-free and gluten-free. And instead of balloons, they want a portrait of their dog made out of icing.
This is no longer a $14.99 cake!
Every business goes through five distinct stages. Find out which stage your business is in with our free assessment.
As soon as your customers start making changes requiring more of your time, the cost should change as well.
Going above and beyond for the customer is a good idea from a service standpoint. But when you’re losing money, wasting time, and having customers take advantage of you, it’s bad business.
The moment a customer changes the scope of their order, the cost needs to change as well.
Extra time always means extra cost. And since the customer is the one making theses extra requests—and you are the one trying to stay in business—the customer needs to take that cost.
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So—how much can your business make? Find out now (for free!) with the new Profit Potential tool!
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About the author
Christy Wright