How to price for profit | Business Tips


Learning how to run a business is no easy task. Figuring out how to price for profit is a challenge in itself. The first step is realizing that profit is not a dirty word. Every business, small shops, corporations, and even not-for-profit companies need to do the exact same calculations to know what it costs them to run their company, and find that magic number where the surplus becomes profit. Profit simply means that all your expenses have been paid, your employees’ salaries have been covered (including yourself!), and you have a surplus which is typically reinvested into the business.  For example, if your daily-use business equipment has a 5 year suggested lifetime, you need to account for the purchase of new equipment in 5 years into your profit margin (technically accounted for as an annual expense, but requires an up-front purchase so you need to have the funds set aside–more on this later).  And we all know there are surprises in business, good and bad, so we need to be prepared. Let’s learn how to price for profit! View Full Post “How to price for profit | Business Tips”