Business Plans – Some Questions To Consider – Part 16

Pricing

• How often do you review your selling prices?
• Do you compare your prices to your competitors?
• Is there a reason for any major variations in prices?
• Have you got different mark-ups or charge out rates for different products or services?
• Do you prepare “what if” calculations on various sales mix items to see what the result would be?

Pricing is definately one are to keep an eye on. Let’s say you’ve sold red widgets for 10 years and your sale price has remained the same for the last 6 years. In most cases, you’ll actually be making less money on the widgets now than you were previously - each year, your costs (COGS, staff, etc) are likley increasing. Monitor that your sale prices are moving up with them.   

Business Plans – Some Questions to Consider

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This post is part of the 50-part series “Business Plans – Some Questions to Consider” (yes, there will be 50 of them!).
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