Price is one thing, value is another.
We often associate price and value, but they are two totally different things. Price is a fixed, factual amount. Value on the other hand is more fluid – we all have different values and considerations on what is important to us. Value is a variable and you can’t decide the value of something to someone else – don’t let this influence your pricing.
In this episode:
- It will suck, probably, but do the math.
- What to consider in pricing beyond time and materials.
- The factors that warrant and justify price increases.
- Thoughts on the reality of how long things take.
- What to do if the price your formula turns out seems exorbitant.
- An example of a time when price is low and value is high to prove that the two are not related as closely as we think.
- A reminder that you aren’t your customer *wink*.
- Helping you understand what your buyer might find value in beyond the result your product provides.
- Two things about your customers that are NONE of your business
- More more more!
A formula for determining price: Cost Price (Labor + Materials Cost) x 2 = Your Wholesale Price, 2x wholesale price = retail price