There's Only One Way to Price For Success

Dear Small Business Owner,

Let’s be honest, pricing your services or products can be one of the trickiest and most stressful parts of running a business. You probably find yourself wondering, “Am I charging too much? Am I not charging enough?

How do I even figure this out?” And I get it. I’ve heard these struggles time and time again from small business owners just like you.

The internet is filled with pricing strategies, each one promising to be the magic bullet, but they’re often incomplete or downright misleading. You even have influencers and prominent leaders giving you half truths, not filling in the most important blank... How It's Done!

These strategies don't truly teach you how to price your product or service. Instead, they give you ways to either guess your pricing or tweak the prices you’re already unsure about.

Here are 10 of the most common strategies floating around out there:

1. Value-Based Pricing: Great in theory, but how do you calculate the “value” you’re providing? This leaves a lot to interpretation... Guessing!
2. Subscription and Recurring Revenue Models: It sounds like a great way to create predictable income, but how do you set that initial price point?
3. Freemium Models and Tiered Pricing: Offering different levels or a free version is popular, but how do you make sure your paid tiers actually cover your expenses and profit, or pay oyu what you desire or are worth?
4. Dynamic and Surge Pricing: Sure, charge more when demand is high, but what if you don’t know what to charge in the first place?
5. Psychological Pricing: We all know $9.99 or $9.97 looks better than $10, but does that cent really matter if the price itself isn’t profitable?
6. Data-Driven Pricing: Using data to adjust prices is smart, but if the starting point is wrong, data won’t save you.
7. Sustainable Pricing: People will pay more for sustainability, but how much more? Can you cover your full business costs, pay yourself and have a set profit with a guess?
8. Hybrid and Flexible Pricing Models: You can offer flexibility, but are your flexible options profitable, or are you losing money?
9. Pricing for Inflation and Cost Increases: Raising prices due to inflation sounds logical, but how much should you raise them, and are you covering all your costs, paying yourself the new salary and adding that set profit?
10. Pricing for Remote and Digital Services: There’s so much flexibility here, but without knowing your true costs, you’re still guessing.

Do any of these sound familiar? Do they help you feel confident about your pricing?

Probably not. And that’s because they don’t show you how to price.

They don’t dig into the core of what makes your business profitable or sustainable.

These strategies help you apply pricing, but without a true pricing formula behind them, they’re just different ways to tweak a guess.

What you need is a formula that helps you understand your expenses, know exactly what you need to charge, and see how many sales you need to hit your goals.

You should be pricing in a way that pays you what you deserve, covers all your expenses, and adds profit on every sale.

And, let’s be real you can’t grow your business with a pricing model that only works when you do everything yourself.

At some point, you need to price for growth before you’re ready to hire, and that means calculating pricing with growth in mind.

This is where my Pricing for Profit Formula comes in. This isn’t just another pricing strategy

It’s a road-tested, real-world formula. It’s simple: input your expenses into the calculator, and it shows you exactly what to charge to pay for everything, pay yourself what you have to earn or desire then how to add profit plus how many clients or customers you need to meet your goals.

And beyond that, it even shows you how to price for growth, so when it’s time to hire help, you’re ready.

Don’t let pricing keep you guessing anymore. Stop wondering and start knowing, with a formula that works every time.

You deserve to get paid what you're worth, to cover your expenses, and to grow with confidence. Let me show you how.

Road Tested,

Jacob Roig

#pricingstrategy, #smallbusinesstips,#businessgrowth,#profitability