Start-Up new business. # 3 PRCING strategies, planning, skills, solutions. Presenter Steve Carver

Описание: Start-Up new business. # 3 PRCING strategies, planning, skills, solutions. Presenter Steve Carver
Making: The Price is Right. How to price your products and services.
There’s never a black and white approach to pricing.
It’s a moving target. Beware of Take It or Leave marketing.
TIP: Staying Power
Strive to offer several marketable profit centers that are things people/businesses want.
More importantly, for long term business, offer several marketable profit centers that are things people/businesses really need.
Set prices high enough to allow ample margins to discount
and negotiate with the shopper.
Price products and services by establishing values.

Basis of business cornerstone. The law: Fair Market Value
The price at which the property would exchange hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell, and both having reasonable knowledge of the relevant facts.
Treasury Regulations sec 20.2031(b)

Selling Time for Money
Requires: Knowing that your personal earnings have a constant - direct relationship with the minutes and hours you are on the job actually producing “sellable / billable” time.

Not to include commuting/driving time, biscuits and coffee time, scheduling
appointments - training – marketing – housekeeping or management time.

Example: Your personal take weekly take home earnings goal: $ 1,000.00
Selling revenue after sales/ use tax…. $ 2,550.00

Weekly take home earnings goal: $ 1,000.00
Gotta Sell ………………………….. $ 2,550.00
At work Time selling Sells Per hour
40 hours……. 15 hours $ 170.00
30 hours……. 10 hours $ 250.00
20 hours……. 7 hours $ 364.00
10 hours……. 3 hours $ 850.00

Mastering the calendar.
Target: 4 day week, 4 week month ( 28 days)
Divide your weekly income goal by 4 to determine the revenue needed each day.
Schedule appointments and jobs balancing the hours and your income goals.
Scheduling considerations have to include travel time, CODB, proximity to next
appointment, preparation time.

Gotta sell $2,550.00 per week.

4 day $ 640.00 per day.
Mon. Tues. Wed. Thur.
$700. $250. $160. $400.
$250. $160. $300.
$150. $160.
$160.
$700. $650. $640. $700.

Steve’s 3 times Cost Rule.
3 x Your cost is $30.00
Logic: $ 30.00 recover initial cost
$ 30.00 recover your overhead cost ( CODB)
$ 30.00 providing taxes and profit.

$ 90.00 Standard Retail Price

Your Standard Retail Price $ 90.00
add ons - additional CODB .. Examples
$ 5.00 Targeted advertising investment
$ 5.00 Customer loyalty planned investment
+$ 15.00 Special “Hook” planned discounts.
$ 115.00 adjusted advertised (sales ticket) price.

Use Fair Market Value as a foundation for your strategy.
The law: The price at which the property would exchange hands between a willing buyer and a willing seller neither being under any compulsion to buy or sell, and both having reasonable knowledge of the relevant facts. Treasury Regulations sec 20.2031(b)
Marketing buying – negotiating values.
Fair Market Value, maybe financing available. *
Low dollar Retail, Cash price retail, “as is – where is”*
Wholesale* Low dollar wholesale. Dealer invoice plus prep and accessories added. *
Dealer invoice including factory freight and floor plan cost.*
Low dollar wholesale. * Below wholesale, Consignment*
Orderly Liquidation Value. Distressed. * (typically have 2 weeks to 90 days to prepare)
Forced Liquidation Value. Foreclosure. * Reserves auction. Pin Hooker. (typically, must sell within 30 days) Salvage Value*. Absolute auction.
not advertised.

Marketing selling – confidential values.
Retail, Promotional Advertised, MSRP + prep + freight + financing + negotiating and with trade in allowance factors.
not advertised.
Retail, Start serious negotiating, MSRP + prep + freight + financing + negotiating without trade in allowance factors.*
MSRP ( mfg. suggested retail price) *
Retail, Competitive, with financing *
Fair Market Value, maybe financing available*
Bare bones Lowest price Retail, financing and warranty after trade-in.
Lowest dollar Retail, Cash price retail, “as is – where is” *


Marketing selling – advertised values.
Retail, Promotional Advertised, MSRP + prep + freight + financing + negotiating and with trade in allowance factors.
Retail, start serious negotiating, MSRP + prep + freight + financing + negotiating without trade in allowance factors. *
MSRP (mfg. suggested retail price) *
Retail, Competitive, with financing *
Fair Market Value, maybe financing available*

by: Steve Carver, Email: [email protected], Telephone: 919.902.0522, all copy rights reserved. PO Box 754, Dunn, NC 28335