056: Pricing for Profitability in 2021 & Beyond

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In this episode, we dive into pricing. 

Not all sales are created equal. There are several reasons that that happens. One of those reasons is that every decision is a profit decision where profit is measured in time, energy, and money. Therefore, when we sell something, it requires time, energy, and money.

Now, if you have good money but it robs you of your time and energy, that's not a good pricing model. Additionally, if you have time to pull it off but it's not profitable, that's not an ideal pricing model either. You should evaluate your products and your processing as often as is necessary to get you to where you want to go. You can't just price something today and hope it's going to keep working at that price forever. Otherwise, your profitability will go down.

As certified Profit First professionals, we have found a very simple, practical, and powerful way of figuring out pricing. Now, there are going to be factors within your control and factors outside of your control. You want to limit the outside factors creating havoc on the inside and for that you need margin. This can be found in profit, time, and energy.

In this episode, you will hear:

  • Taking the emotion out of money
  • Understanding your real revenue vs. top-line revenue
  • Why you need to create separate accounts
  • More examples and scenarios 

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Supporting Resources:

054: ​​Celebrating Y21Q02 Profit Distributions