If you can’t answer the above questions right away, chances are that your business is making sales which is not translating to profit (in other words, you are in busy-ness and not business!!!)
Let’s take a practical illustration.
If you sell 50 units of your product monthly at $1,000 each, and it cost you $350 per product to purchase the raw materials or buy from the manufacturer, you may assume that you are making a $650 profit on each product and may be tempted to reduce the price during a sales negotiation. However, if you take the time to capture all your costs, you may realise that other costs such as salaries, selling and administrative expenses, taxes, etc. may be taking 50% or more of your $650 profit. Now imagine if you already gave the customer a significant discount without doing this calculation… Oops! You are going to be making a loss on the sale. Ouch, that hurts!…
Pause for a second, does this describe how you run your business?
Aside your business costs, there are other key factors (e.g. value and brand perception, market conditions, competitive strategy, etc.) you have to consider in figuring out the ideal price for your products and services. Then there’s all those different strategies you could implement such as payment plans, pricing levels, sales promotions, etc.
I am giving you a FREE fill-in-the-gap 18-page PROFITABLE PRICING WORKBOOK that will guide you in your business profitability journey. The workbook is in Microsoft Word, so you can edit and use it as you like.
But what’s a pricing workbook, if you don’t have the accurate knowledge to use it to generate maximum profit for your business?
I have therefore created an E-BOOK that will teach you a simple process for figuring out the ideal price for your products and services. Your business will never be broke again!!!
I would have offered the e-book for free as well, but because I know the amount of value in the book and I want it to be in the hands of those who will appreciate the value and take action with the information, I decided to attach an affordable price to it (remember the saying ‘you value what you pay for’?).
My name is Perpetual Anagha. I have helped Entrepreneurs like you maximise profits by teaching them:
I am a seasoned professional with 7+ years of experience providing financial advisory services to international and indigenous companies in Nigeria. I have audited and consulted for companies listed on the Nigerian Stock Exchange.
I currently head the Corporate finance and advisory unit in a top finance firm in Nigeria. Prior to that, I was a Manager with one of the global ‘big 4’ accounting firms. My areas of expertise include Business Analysis and Advisory, Financial planning, reporting, and management, Accounting, Business controls and processes, Corporate finance, and General business management.
I have always been intrigued on why most African indigenous businesses do not outlive their owners unlike foreign owned businesses such as Coca-Cola, Guinness, etc. In the duration of my career, I have been exposed to several indigenous and multinational companies. And one key thing that stands out is the lack of or inadequate business structures and financial processes in the indigenous companies when compared to their foreign counterparts. Also, most indigenous companies are still owner managed, where most of the business processes are centered around the owner. This explains why a lot of indigenous companies don’t outlive their owners.
This is the reason why I am passionate about teaching Business owners and aspiring Entrepreneurs on how to establish the right business and financial structures in their organisations.