Setting prices for your offerings is one of the hardest decisions to make as a business owner. Louise and I are sharing tangible takeaways and examples of how we’ve navigated pricing in our businesses. We talk about the difference between your bottom line and your profit and loss statement, when and how to raise your prices, and how to create consistency across your pricing approach. Lou breaks down the three different elements to consider when setting a price that works best for you and your business, and she also illustrates how having a variety of services helps you scale. 

 

IN THIS EPISODE, WE TALK ABOUT:

• A good profit margin benchmark to aim for 
• Why cash flow is so important 
• How to avoid scope creep 
• My experience transitioning out of a membership program and into hourly billing 
• How to advise your current clients that you’re changing your pricing 
• How to respond to someone who doesn’t respect your pricing 
• Why Louise and I both believe that you should be publishing your pricing on your website

 

RESOURCES

• Atomic Habits by James Clear
• A CEO Only Does Three Things: Finding Your Focus in the C-Suite by Trey Taylor 

• The Fred
• Mila + Stevie

 

CONNECT WITH LOUISE

Follow Louise: @a_wild_lou_appeared 

Follow The Finance Agency: @the_finance_agency 

Learn more about The Finance Agency: thefinanceagencyllc.com 

 

CONNECT WITH LAUREN

Follow Lauren: @thelaurenboyd

Join the waitlist for HR app, Quinn

Follow Guide My Business: @guidemybusiness

 

EPISODE HIGHLIGHTS

( 0:48 ) Welcome to I’ll Make This Brief! Today, Lauren and Louise are talking about pricing. 

( 1:28 ) Lauren and Louise chat about what books they’re currently reading. 

( 2:21 ) Lauren and Louise share two small businesses that they like. 

( 4:20 ) Lauren asks Louise, “For a new offering, how can we come up with a price?”

( 4:58 ) Lauren asks Louise, “How much should we save for taxes? What's a good rule of thumb?”

( 5:16 ) Lauren asks Louise, “What would you say is like a good generic profit margin?”

( 5:58 ) Lauren asks Louise, “Can you break down the reason why cash flow is so important?”

( 13:23 ) Lauren asks Louise, “What would you say is generally a normal percentage increase? Or should we stay away from being caught talking about it in the concept of percentage increases?”

( 19:11 ) Lauren asks Louise, “How do you raise prices?”

( 27:51 ) Lauren asks Louise, “I have heard that only six out of 10 people should be hiring you or your prices are too low. What do you think about that?”

( 29:46 ) Lauren and Louise talk about why they like to put their prices on their website.