Make More Margin
Do you own a retail or service business? You could be leaving margin on the table, whether you plan to keep the business or sell it someday.
I’m a pricing analyst. At Samsung I worked on the models that set prices on millions of dollars in monthly sales of refurbished electronics while keeping inventory moving. Now I do the same work for small businesses.
Get Rodrigo’s stories in your inbox
Join Medium for free to get updates from this writer.
Most owners price one of two ways: they copy the market average, or they add a markup to their costs. Both leave money behind. Your cost tells you the lowest price you can afford. It doesn’t tell you how much more customers will pay, which items can take a increase, or which discounts are costing you more than they bring in. Finding that takes a clear picture of your real costs (materials, labor, or both) and how your customers respond to price.
If you don’t know your numbers, you’re missing margin.
This matters even more if you’re thinking about selling. Buyers pay based on your earnings and how well you can prove them. Raising margin before you list, and being able to show clearly where your profit comes from, can move your sale price. It usually takes several months to see the effect, so the earlier you start, the better.
Reach out via LinkedIn for pricing consulting services. First meeting is free.
