Ask Clay Anything: What Percentage Should the Profit Be on Any Service or Product?
Do you have a product or service that people love but you don’t know how much money you should be making off of it? If this is you then listen in as business coach Clay Clark gets in to the details of pricing and profits.
Action Steps – How to price your product or service
- Mystery shop the competition
- Make your branding flawless
- Attempt to Sell 15 Somethings at Each Price Point and Track the Results
- NOTABLE QUOTABLE – “Pigs get fat and hogs get slaughtered.” – Doctor Robert Zoellner
- Add your hard costs plus your variable costs and then add a 20% to 30% profit margin onto the product or service that you offer unless you are not scalable.
- NOTABLE QUOTABLE – “Think win-win.” – Stephen Covey (The best-selling author of The 7 Habits of Highly Effective People)
- NOTABLE QUOTABLE – “You’ve found market price when buyers complain but still pay.” – Paul Graham (The man who started Viaweb which later became the Yahoo! Store and the business coach / advisor and investor behind Dropbox.com, Reddit.com, AirBNB.com, etc.)