It may come as a surprise, but in many instances, small business owners simply do not know the real cost involved in producing their products or services, with the result that many are often under-pricing, which in turn negatively impacts on their profits.
Much of the success of a business depends upon how products or services are priced. If prices are too low, businesses will not recover their expenses, but if prices are too high, they will potentially lose sales. In both cases they will not make a profit.
Given the critical importance of understanding and controlling costing and pricing in running a business today, one of the regular support programmes that Kilkenny CEB run is on “Costing & Pricing.”
The CEB are keen to help equip small business owners with the ability to manage their business more profitably and make better decisions by understanding what their product/service is worth to their customers and what it costs to produce them.
Typically, the CEB helps clients to: Establish a pricing policy for their business; understand the underlying cost base and how to incorporate this information in deriving the real cost of providing their products/services; Implement a simple reporting system that enables them to record costs and improve profitability; understand in both the short and long term the impact on the business financially of the introduction of new products/services; understand the impact of increasing or reducing prices; and understand Management Accounting terminology and communicate more effectively with their accountants, bank manager, etc.
If you would like to find out more about how we can help you with your approach to pricing your product or service, please contact us at Kilkenny CEB. Tel: 056 7752662