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The How of Business - How to start, run, grow and exit a small business.

498 – Pricing Fundamentals for Small Business

The How of Business - How to start, run, grow and exit a small business.

Henry Lopez, Levante Business Group

Entrepreneurship, Business

4.7522 Ratings

🗓️ 13 November 2023

⏱️ 31 minutes

🧾️ Download transcript

Summary

How to price your product or service. Henry Lopez shares the fundamentals of pricing your products or services to operate a profitable small business.

Show notes page: https://www.thehowofbusiness.com/498-pricing-fundamentals/

Downloads available on the show notes page:

  • Pricing Fundamentals for Small Business Owners
  • Priceless BizNotes

How do you price your product or service to find that balance between what your target market will pay and what you need to charge to make a profit?

On this episode of The How of Business podcast for small business owners, Henry Lopez shares his approach to pricing and what he has learned from other experts about pricing for small business products and services.

Pricing Markup Calculation - 6 Steps:

  1. Calculate Indirect Expenses (Overhead).
  2. Calculate Cost of Goods Sold (COGS) or Cost of Sales.
  3. Set Target Selling Price.
  4. Calculate Break-Even Point.
  5. Determine Markup.
  6. Adjust Selling Price.

Henry Lopez is the host of The How of Business podcast – helping you start, run and grow your small business. The How of Business is a top-rated podcast for small business and entrepreneurs. Find the best podcast, resources and trusted service partners for small business owners and entrepreneurs at our website https://TheHowOfBusiness.com

Transcript

Click on a timestamp to play from that location

0:00.0

Welcome to the how of business with your host, Henry Lopez, the podcast that helps you start,

0:05.9

run, and grow your small business. And now, here is your host. Welcome to the how a business podcast.

0:13.6

This is Henry Lopez. And this episode is about the fundamentals of pricing your product or service

0:19.7

so that you can operate a profitable small business.

0:23.1

So how do you price your product or service to find that balance between what your target

0:27.9

market will pay and what you need to charge to make a profit? I don't have all of the answers

0:32.6

on this, but on this episode, I'm going to share with you my approach to pricing and what I've learned

0:37.2

from other experts about pricing for small business products and services. To receive more

0:41.7

information about the Howa Business, including the Show Notes page for this episode, and

0:45.6

how you continue supporting my show and receive discounts, exclusive content, and join my

0:51.4

monthly group coaching session through a Patreon membership. Just visit the howab business.com.

0:56.6

I also encourage you to please subscribe to my show wherever you might be listening so you don't

1:01.5

miss any new episodes. I also want to take a moment to thank a few of my coaching clients,

1:05.8

including Josh, Caden, Haley, and Tony. Thanks for the opportunity to help you start and grow your small business.

1:13.8

So there are two downloads that will be available on the show notes page for this episode at

1:17.9

the howab business.com. One is a presentation that follows with the topics that I'm going to cover

1:23.2

on this episode about fundamentals of pricing for small business owners, as well as what I call

1:28.5

a biz note, which is my summary. Sometimes when I read a book, I'll create a summary for myself,

1:34.0

and I'll share those on the website sometimes, and this is on a book related to pricing called

1:39.5

Priceless. I'll talk more about that book later, But those are two downloads that I encourage you to go get

1:44.9

at the show notes page for this episode at the howab business.com. So what I'm going to focus on on this

1:51.4

episode is to share with you an introduction to pricing strategies for small business owners that I'm

...

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