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…
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…
Underpricing means deliberately setting prices below market level, sometimes even below your own cost, to lure customers away or push competitors out. It looks…
Margin in Plain Terms: What It Is, How to Calculate It, and Why Your Business Depends on It Margin shows how much money actually stays with you from every…