5 ways to figure out how much to charge for a business no one else has - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 70 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 31%
  • Publisher: 51%

Australia News News

Australia Australia Latest News,Australia Australia Headlines

I founded a bridesmaid for hire business and made the mistake of not immediately setting a price. Here are 5 ways to figure out how much to charge when you start a business no one else has. (by JenGlantz)

wundervisuals/Getty ImagesWhen she was first starting out, she hadn't set a price — and said on live TV that she would work with any budget. That was, in her words, a "major fail."

But there I was, on live TV, getting asked for the first time how much I charged for this service. By that point, I had a website built and packages created, but my pricing was a big question mark. I was asking potential customers what their budget was and how much they would pay for this service, one that didn't exist before my company created it. So on TV, I scratched my head, let out a few "ums" and said that we don't have a standard price and work with any budget.

I started asking over 20 brides how much they would pay for the first of its kind service I created. I explained how many hours of work they'd get and the details of the package and then asked what they thought was a fair price. The average that they gave was where I decided to start my pricing offerings."You simply ask 10-20 potential customers what they would pay for"X" . You then take whatever answer they give you and enter it into a spreadsheet," said Salamunovic.

"A retail sale must cover more than just production costs. For example, what is your customer acquisition cost ? If you haven't factored in marketing and sales costs, your shelf price will not support your company's profit margin," said Kelly.You can charge people whatever you want for a product or service — but that doesn't mean they will buy it.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in AU
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

I built a 7-figure business without an MBA — here's how - Business InsiderLuisa Zhou argues that not having an MBA was actually beneficial — and a big reason why she's made over a million in revenue in less than a year. BernieSanders AOC ewarren JoeBiden AndrewYang SpeakerPelosi PeteButtigieg MikeBloomberg You are asaian
Source: BusinessInsider - 🏆 729. / 51 Read more »

Three key trends we took away from CES 2020 - Business InsiderAnalysts at Business Insider Intelligence highlight three key trends from the 2020 Consumer Electronics Show.
Source: BusinessInsider - 🏆 729. / 51 Read more »

YouTube child content policy change hurting creator revenue: Yoola CEO - Business InsiderYoola CEO Eyal Baumel told Business Insider that while he lauds the idea of YouTube doing more for kids, as it stands, it's bad for business.
Source: BusinessInsider - 🏆 729. / 51 Read more »

UK government fails to answer urgent Brexit questions from businesses - Business InsiderExclusive: The UK logistics industry submitted 31 urgent questions to the government last month and received no answers.
Source: BusinessInsider - 🏆 729. / 51 Read more »

How Chase CEO Jamie Dimon became one of the richest men in banking - Business InsiderJPMorgan Chase posted record earnings on Tuesday. Here's how CEO Jamie Dimon, who has a net worth of $1.7 billion, became one of the richest men in banking. TaxTheCorporations
Source: BusinessInsider - 🏆 729. / 51 Read more »