Get Your Moneyโs Worth! Things to Know When Pricing Your Products and Services
Do you struggle with picking good price points in your business? You know what I mean โ coming up with a price for your services or products that you know will actually be profitable?? ๐ฌ If that sounds like you, then itโs time to get to know the fixed and variable expenses in your business โ and then use a super simple breakeven formula ๐ค ๐ค ๐ฆ๐ผ ๐๐ต๐ฎ๐ ๐ฎ๐ฟ๐ฒ โ๐ณ๐ถ๐ ๐ฒ๐ฑ ๐ฒ๐ ๐ฝ๐ฒ๐ป๐๐ฒ๐โ? These are your โoverhead costsโ, and they donโt change much from month to month. You pay roughly the same amount, no matter how much (or little!) business you do. Some examples of fixed expenses are: ๐ข Rent or lease of office space ๐ฉ๐ปโ๐ป Website hosting fees ๐ Employee salaries ๐ค ๐๐ป๐ฑ ๐๐ต๐ฎ๐ ๐ฎ๐ฟ๐ฒ โ๐๐ฎ๐ฟ๐ถ๐ฎ๐ฏ๐น๐ฒ ๐ฒ๐ ๐ฝ๐ฒ๐ป๐๐ฒ๐โ? These are expenses that are directly tied to your volume of production and/or sales. Therefore, the total amount of these expenses changes depending on your volume.
