Small Biz Life

When you set the rates for your services, how much did you think about it? How did you come up with that figure? In this episode, we discuss how to set a rate for your services that allows you to achieve your goals and plan for the future.  Are you a price taker or a price maker? In the area of pricing, there are two types of companies: price takers and price makers.  Price takers are businesses with lots of competition that do little to differentiate themselves from the competition. Because of the lack of differentiation, rates are set by the market.  Price makers are businesses with little competition in their field or that have worked hard to differentiate themselves from their competitors. Because they create additional value, these businesses are able to set their own rates. This is where you want your business to be.  If you have ever studied accounting, you probably know that revenue - expenses = profit. This is a commonly taught formula and is the basis for the income statement (also called a profit