127. How to build a profitable pricing strategy for your business

Welcome to The Fit Wealth Show, In the dynamic world of online business, determining the right pricing strategy is crucial for remaining competitive while ensuring profitability. The right pricing strategy can attract your ICA and drive your business Buuut, striking the perfect balance between competitiveness and profitability requires a strategic approach. Today on the show, we’re talking all about pricing strategies from a financial professional view to provide insights on how to implement them effectively. So ditch that whiteboard, grab your P&L’s and let’s get to it, this is the Fit Wealth Show!

Understanding your costs, you can’t figure out where to go, if you don’t know where you are...meaning you can aim for what other similar online business owners are doing, but we assume you are unique in what you offer and who you offer it to, so let’s start with the cost of doing business:

• Fixed Costs: These are expenses that do not change with the level of production or marketing, rent, salaries, and insurance.

• Variable Costs: These costs vary directly with the level of production or sales, such as merchants, fulfillment of services, and raw materials

• Break-even Point: The break-even point is where total revenue equals total costs, resulting in neither profit nor loss. Understanding this point helps in setting a baseline for your pricing strategy.

Using your financial statements to help you decide, vs. A whiteboard

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The Fit Wealth Show is brought to you by Fit wealth advisors. Fit Wealth Advisors is an investment adviser registered under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. This presentation has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation.