New entrepreneurs and business owners frequently fall for the Net 30 trap. They accept Net 30 payment terms (aka, getting paid 30 days after the invoice) because they think that's just how business is done. They don't realize there's another way (or don't quite...
‘The Best Damn Small Business Newsletter on the Internet’ archives
Pricing Article Archives
Review your project profitability to learn better pricing
Profitable project pricing is unassumingly difficult. You need to accurately do client discovery, assess the scope, plan employee capacity/labor, figure out how much overhead and direct expenses will cost you, and build some profit into your proposal, all while...
Worry about your business and not ‘what the market can bear’ when increasing prices
When discussing pricing, people frequently mention 'what the market can bear' (aka the max people will pay for your product/service) as the upper threshold. Because, in theory, if you charge more than what the market can bear then no one will buy from you. But, 'what...
Reader question: “I raised my prices and a few of my clients are upset. How do I fix this?”
Raising your prices is one of the most common bits of internet small business wisdom. The general idea is that you're almost always undercharging because people are bad at determining their own value and, even if you lose a few clients, the increased billings will...