Last week a lady asked me "isn't more profit something to be ashamed of as a business owner?"
I've been thinking about her question for days.
I understand. Many of us grew up hearing "money is the root of all evil"
Then we grew older and became business owners
Now we undercharge, apologise for prices, and call it humility.
Struggling to make ends meet. Yet your payments are pending
Rent. Suppliers. Subscriptions. Both business and personal.
If you have nothing left after costs, you can't pay those bills
You can't serve more customers
You can't grow your business
You're praying for more funding, while selling at a loss
If God gave you this business, He won't let you run it at a loss.
There are 3 ways to make more profit.
Better pricing
More sales
More visibility
I'll explain the first one briefly:
Better pricing doesn't mean selling at a random amount you feel.
Most business owners add a figure to their cost, call the total their "price", and call the extra "profit".
Wrong.
Price is something you determine, based on how many sales you must target, to settle your bills.
Profit determines what a better price would be for you.
Here's a fix you can try today:
Write how much you need to pay bills this month
Divide that amount by how many items you can sell this month
Add what you get to one item's cost.
That's your price.
Make more profit.
About the author:
Making more profit comes down to three things: better pricing, more sales and more visibility.
Hi, I’m Nonye. Happy to meet you.
Every day I share a short story for business owners. Using real numbers and simple English.
The stories come from business owners I’ve worked with. I explain business concepts that help them make more profit.
100+ business owners helped so far.
If you’re a business owner this will help you.
Start here → nonyeroseline.com