Are you pricing your products and services too low??

Are you pricing your products and services too low??

Have you considered all the factors involved??

Let’s see what Steve Jobs did….

Steve Jobs’ product pricing formula: Cost of materials x 3 + 33%

Wozniak wanted to sell Apple I at 20% markup. Steve sold it at three times what it cost to build Apple I, plus 33%.

As a result, 38 years later, Apple has $155 billion dollars in cash right now.

Had Steve been selling his stuff like Wozniak desired, there would have been no computer graphical user interfaces in 1984 (the revolution in PCs). There would have been no iPods in 2001 (the revolution in music). There would have been no iPhones in 2007 (the revolution in mobile devices).

You’re most probably pricing your products and services too low.

steve-jobs

Looking at the competition around you might be forced to lower your prices. If you have read my article The Key To Failure is To Try to Please Everyone; You would know you cannot please all your customers. You need to choose what sort of customer you want (price led? Features led? Service led?).

Have you considered all the factors while pricing your product?

Have you thought about the cost of producing, delivering and maintaining excellence?

Have you thought about the cost of: sales, marketing, educating yourself, research and development, hiring new employees, educating employees at top sources?

Furnishing offices?

Building company culture?

Making employees happy at your workplace?

How about the cost of enough of your free time as a business owner, which is essential for creativity, innovation and breakthroughs?

20% markup is far too low to maintain excellence. Not even a 100% markup, would help most of the time.

Are you building a business or creating a lifetime job just for yourself? There’s a big difference.

The right price is what the market is ready to pay. The world is abundant with cash at all times. Think of money as a form of energy: it’s always around you. Money is always flowing, and it’s in one place at one point and in another at another point. You make sure you create enough excellence so that the money wants to flow through you and your company.

This is what the law of attraction and The Secret by Rhonda Bryne talks about.

In fact everrybody who’s rich will tell you the same story, over and over again: money is not about working harder, it’s about putting in excellence and billing people when they show up to consume your excellence.

So if you are striving for excellence and building a business make sure to consider all the factors that would help you revolutionize the world with top class products.

If you can convenience yourself that the product is worth the money, there would be people out there who will be ready to shell out the extra $$ for that quality.

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