10 pricing tips for higher profitability of smes (on click)

10 Pricing Tips for Higher Profitability of small businesses

A Personalized ServiceOffered by an Experienced and Trusted Business Coach

Veronica Broomes Business Coach & Mentorwww.yoursmallbusinesscoach.co.uk

Pricing and your small business

One of the essential pillars of any business is pricing.

Pricing is used to build business credibility and build relationship with loyal customers. For some, it’s the greatest challenge of running a small business.

www.yoursmallbusinesscoach.co.uk T: +44(0)845 054 2870

Finding the Right PriceWhich of these have your used in your business?

Trial & Error

Find a cash cow Put numbers

in a hat


Sell below competitors’ price

Pricing tips

1) Decide on the pricing strategy for each product and service offered by your business.

For example, decide if to position your business as ‘low price’ vs. ‘high value’.


Pricing tips

2) Simple pricing strategies that small businesses can use:

Value- based pricing Low Introductory Price Promoting Customer Loyalty Brand Influenced Pricing


Pricing tips

3) Have a range of packages for different budgets. Create a pricing menu!

4) Decide how you price different choices/ packages on your menu.e.g., taster, main course, dessertwww.yoursmallbusinesscoach.co.uk T: +44(0)845 054 2870

Pricing tips

5) You will get best results from choices made by customers if the price difference between most expensive and middle is smaller than price difference between middle and least expensive.

The next slide gives an example from budget airlines.


Pricing tips Example of menu pricing (budget

airlines):

Note: In this pricing menu, the 4* package is closer to the 5* in price, not that of the 3*.

Description of option on Pricing Menu Cost

3 star (Taster) – air fare only(does not include passenger’s hand luggage)

=$200, return

4 star (Main course) – air fare plus 10 kg hand luggage

=$500, return

5 star (Dessert) – air fare plus up to 15 kg hand luggage, priority check-in at airport

=$600, return


Pricing tips

6) If you have specialized products or services offer them as premium items.

7) Reward existing customers who refer your services to new clients.

Rewards can be discounts, vouchers, coupons or even free giveaways of lower cost items. www.yoursmallbusinesscoach.co.uk T: +44(0)845 054 2870

Pricing tips

8) Create irresistible offers and special promotions.

9) To increase profits, you can reduce the quantity of your products or services but with no loss of quality. This strategy can be used instead of raising prices.


Pricing tips

And, remember…..10)Provide added value for

customers AND increase profits in your business.

For more profits, greater value AND more customers

To grow and stay in business, do not use your competitors prices only to set prices! Unless structured as a ‘loss leader, this approach will threaten your survival in business.


Pricing tips -complementary offer

Request your free pdf copy with 10 Pricing Tips for higher profitability in Small Businesses Email: [email protected]

Claim your 25% discount on coaching to develop Profitable Pricing Menus for your business (promo code: YSBC12)

Want a more profitable business & greater value for customers? Then, contact Your Small Business Coach, Veronica.Email: [email protected] T: +44(0)845 054 2870


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