Figuring out how much to charge for your products and services is one of the most important decisions you have to make as a business owner. If you’re like most other owners it’s also one of your most difficult. Set them too high and you drive off customers. Set them too low and you leave a major portion of your profit on the table, costing you money you can never recover. Money that is often the difference between rousing success and barely scraping by on the edge of bankruptcy.
At an even deeper level, what you charge is a major component of the image your company presents to its customers, prospects, and the outside world. Generally speaking, higher prices tend to create an image of quality and prestige, while low prices often leave a second-rate impression.
Taking this quick assessment will let you know how close your current prices are to where they should be to earn maximum profit. Armed with this information, you’ll either know that your pricing decisions are right on, or that you’re letting large amounts of cash slip through your fingers that can never be recovered. Improved pricing skills will lead to higher profit and improved cash flow almost overnight.
Follow the directions at end of the quiz to read and evaluate your assessment. As an option, click the ‘Submit My Answers to Chuck’ button at the end of the assessment if you would like Chuck to contact you to discuss your results and some potential ideas and/or solutions.
Now count the number of “Yes” answers:
- If your score is 5 or less you’re pricing more effectively than most and little or no action is required.
- If your score is between 6 and 15 you can improve your company’s profitability by learning to become a more effective pricer.
- If your score is greater than 15, you’re losing a lot of money right now. Learning how to become a better pricer now will close this huge profit drain and you’ll see significant, immediate increases in both profitability and cash flow. Your company’s at risk of failing and you simply can’t afford to sit still while its bleeding cash.