I work with many business owners, from small mom & pops to pretty good size companies worth millions and across the board the one thing they all have in common is the need to make a profit. It’s a dirty word to some people. Even in our highly capitalistic culture, we have a love/hate relationship to making money.
We tend to revere successful business people like Sam Walton, or even a Kim Kardashian. Simultaneously we also find the filthy rich to be a bit gross and have a tinge of disgust at people who are all about money. Take Kevin “Mr. Wonderful” O’Leary on Shark Tank – he’s pretty much the villain on the show. He’s the one that we always look to when a pie in the sky plan needs a hard landing back in the real world.
But, for all of his tactless, graceless, sometimes painful commentary to the participants, he’s usually right. A business needs to make a profit. There I said it – the nasty word. It’s looked down up by many but without it, the company will cease to exist, jobs will disappear, vendors will lose buyers, customers will lose products they relied upon. Profit is a necessary component of all businesses.
Entrepreneurs need to have the self-esteem to demand prices high enough to make sure they have a profit in their services and products. It’s not easy at first. Most first time entrepreneurs are scared to quote a high price for fear that they will “lose” the sale. But here’s something that I’ve learned over the years – the more I charge the more my clients and customers respect the advice I’m giving them, and they are then more motivated to succeed to earn back the investment in my services.
All entrepreneurs and business people need to dig deep and realize that they are providing needed services and products, and they need to be properly compensated in order to continue in business. The clients and customers will actually be happier to pay a higher price, when you just state it like a fact, and here’s something that most new business owners forget – the clients and customers who price shop will never be happy, and those that don’t price shop are coming to you for your quality and services and expect to pay for it.
By raising your prices, you raise your profits and are more likely to stay in business and will have an easier, happier, clientele to deal with – so put aside those negative feelings and thoughts about profit and realize, to quote Martha Stewart, “It’s a good thing.”
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