SMALL business owners often are afraid of making their goods and services too expensive, which can damage their margins.Raizcorp trainer Yasmeen Alli gives some tips on how to judge if your pricing structures are sound.Most business owners think they need funding, when what they need is paying clients — without sales there is no business.You don’t just need sales, you need profitable sales, says Alli. "If you’re not making a profit, your sales are costing your business money, not making it money. To do this you need a good pricing strategy," she said.Many entrepreneurs have a fear of pricing on the high-end of the scale, she says. They believe that because their businesses are small, they cannot price themselves alongside their bigger competitors. The problem comes when at the end of the month there have been sales, but there is no money in the bank, says Alli."Pricing needs to include the margin to cover the costs of doing business or overhead expenses. Without these, our businesse...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.