Practical articles about cost price, pricing and profit in a service business - in plain language.
When an exchange rate rises, the materials you buy abroad get pricier. How much exactly needs to be added to the service price depends on two things: what…
It's convenient to raise prices in four steps: calculate how many customers you can lose without hurting profit, choose the new price, calmly tell customers…
A discount pays off when the extra customers cover what you're losing on every service. The deeper the discount, the faster the number of customers needed to…
A specialist who works alone calculates a price from how much they want to earn per month. The costs are added to the desired income, the sum is divided by the…
There are three ways to pay a specialist: a percentage of the service price, a fixed rate, and mixed pay, where part is fixed and part depends on revenue…
The break between customers costs as much as the workstation costs for those minutes: the length of the break multiplied by the cost per minute. That's why…
Direct costs can be tied straight to a specific service: the specialist's pay, materials, small service items. Indirect costs are paid for the business as a…
A business sends signals that it's time to revisit prices from two directions. Some show that demand is outrunning your supply: the schedule is full, customers…
The price of a service is made up of three parts: pay for the person doing the work, materials, and a share of the business's overall costs. What's left above…
ROI shows how much profit every dollar you invest brings in, as a percentage. It answers the question “how good a deal was this investment” and lets you…
The payback point arrives when a business has earned exactly as much as you put into it at the start. Before that moment, your investment hasn't come back yet…
Underpricing means deliberately setting prices below market level, sometimes even below your own cost, to lure customers away or push competitors out. It looks…