16/07/2026
I find myself having frequent conversations with business owners who find themselves cash short ALL THE TIME, and in the same breath tell me that their pricing strategy is simply to match what everyone else in the industry is doing. 🛑 🙈 Have you considered the dangers?
❗️Costing your products/services to compete with your competition only to find that the margin doesn't cover your own costs. 🤔 Consider this : your competitor may have lower overheads to you, so can afford to charge at this price. That doesn't mean you can. ✅ Review your costs, challenge them with your suppliers of those costs, and perhaps increase your margin to remain competitive.
❗️What if you can't reduce your costs any more ... and you find that you just can't maintain this margin to cover your costs enough to stay in business. 🤔 Consider this : there is a real opportunity to reflect on your marketing strategy when you are confronted with this scenario. ✅ You could adjust your marketing strategy to demonstrate the value proposition of your product/service.
❗️When you prices are fixed and there is no where to really adjust either the price or the costs associated with getting that product/service to market. This is not the time to give up. 🤔 Consider this : If your business is made up of more than one product/service, the likelihood of your products/services making different margins is high. ✅ You could therefore undertake a complete review of all your products/services in your catalogue to see whether there is enough margin overall, that may provide you with the leverage to continue to take the hit on one product/service but maintain a healthy margin as an overall business.
💡 Having a kick ass costing strategy in place that allows you to continually challenge, reflect and measure the effectiveness of your strategy on your desired margins, may just well be the answer to improving your cashflow and therefore improving your overall financial strength and health of your business.
Download my free checklist to the elements of a successful pricing strategy 🔗 in bio or at www.amybajada.com.au/pricing
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