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What we’re talking about is cost-plus pricing versus value-based pricing.Cost-plus pricing is the nuts and bolts of pricing: labor and materials overhead profit = your service pricing.Before you go out and buy new equipment, list all of the various materials you need to run your business and indicate if you have them in your possession already.
When it comes to marketing and sales, there is an endless list of ideas.
Explore all of your options and determine which you’re most comfortable taking on.
That being said, it’s one of the costs that’s within your control to keep down.
You need equipment to start your business, but you don’t need employees if you’re willing to do the work.
If you’re the only employee, how many jobs can you do per day, and how much do you need to make from each job.
You may decide that certain jobs don’t make enough money for you to focus on selling those services.
If you’re just getting started, it will lay the foundation for a successful business, and if you’ve been in business for years, it will help you determine where your business truly stands in relation to your goals and your competition.
What industry are you in, who owns your business, what do your finances and assets look like, and who runs your daily operations?
If you’d like to start with flyers, but want to develop an online presence in the future, set a tentative timeline for this next step as you’re working through your business planning.
Labour costs are going to be a recurring line item for your business.