Sign Pricing Philosophy

description

As an MBA with a concentration in Economics (and a BA in Economics too), I come at pricing strategies from a unique perspective. While 99% of what shop owners are told for pricing is based on their costs, they rarely are encouraged to price based on any other factors, including "what the market will bear." After a brief lecture on pricing "elasticity" as it relates to our industry (and I promise it won't be boring or erudite!), I will "cheerlead" your attendees into fully understanding the value they bring to each job they do and why they should be charging more money for it. I'll discuss the "virtuous cycle" of how charging more money for jobs "on the margin" will bring in additional revenues that can be used to hire more/better people, bring on new products/services to better serve clients, upgrade equipment, all allowing for happier clients and the ability to continue charging higher prices. I will also discuss the "hypocrisy" of abusing vendors with trying to get lower and lower prices from them and showing how that will end up biting them in the end. Again, this is important for all your attendees, as owners in our industry tend to have a bit of a pricing "inferiority complex." For those of the attendees who price robustly, they will feel vindicated in their high prices, and for most of everyone else, they will see the benefits of not constantly relying on precise cost and time estimates, and if they do feel the need to continue in that vein, they should at least aggressively "round up." Average margins in this industry tend to run from 10%-20% and the tactics I will discuss can easily add 5%-10% to those who are earning at the lower end, a possible game changer.