Everything related to the money of your small business or startup to help you manage your finances.

5 Pricing Mistakes That You Need to Escape If You Want to Succeed

5 Pricing Mistakes That You Need to Escape If You Want to Succeed

Pricing is a combination of science and art. We cannot focus on science without art or focus on art without science when we are pricing our products and services. So, there are many possibilities to make several pricing mistakes that will cost your company.

Do you think that your price is one of the most critical elements in your business?

Do you know that everything you do in your business impacts your prices while on another side, your prices impact your offers, sales, and value perception of your customers?

Let’s see some of the frequent and most disastrous mistakes that you can make.

Why Focus on Positive Cash Flow in Your Business

focus on positive cash flow

Cash is the king for all companies and entrepreneurs regardless of their market or industry. They must love it! They must have it! Without money, the existence of the company is in doubt. Without positive cash flow, you cannot grow your business.

You cannot finance your daily business operations without positive cash flow in your small business. You cannot market your company if you don’t have money, and you will not have money if you don’t have positive cash flow.

As an entrepreneur, you must use tools such as cash flow analysis to discover where the money of your small business is spending, what you will need to improve, and how you will improve it to make your company be more cash stable company.

Why must an entrepreneur love cash for his company? Can your company survive on the market without positive cash flow?

Here are some of the possible answers to this question.

What is Behind the Apple’s Pricing Strategy?

apple pricing strategy

Pricing strategy is one of the most important business strategies. The wealth of your business in much will depend on that pricing strategy and customers perception about your prices.

I am Apple’s iPhone user nearly one year, and now I am close to making a decision to buy an iPad. In the same time, my future considerations are first to buy a Mac and after that to transfer my operating system on all my equipment from Windows to Mac.

I don’t know why, but I feel that I am starving for their products. It’s probably connected with their so successful product launch strategy for each of their products.

Here’s a Quick Way to Analyze and Improve Your Profitability

business profitability

Every entrepreneur starts a business for the most important purpose. To make a profit and to improve her personal life. Profitability is something that is the most wanted thing in the life of every entrepreneur. If you have $5,000.00 this year, you will want $7,000.00 next year. If you have $10,000.00 profit this year, you will want $15,000.00 for next year. If you have $150,000.00 profit this year, you will want $200,000.00 for the next year. You will always want more profit.

You must permanently do two things about your profitability:

  • Analyze from time to time the profitability and
  • Improve the profitability.

Why Lowering Prices is a Bad Strategy For Your Small Business

lowering prices

Many entrepreneurs in the time of recession think that the best way to increase sales and keep their existing customers is to start lowering their prices. Additionally, many of them are lowering prices to eliminate competition, and to increase revenue and sales. And in many cases, they do that!

However, there are many hidden and visible negative effects on the business when you use such a pricing strategy.