Pricing Products Services


Types of Pricing Programs

Let's start with the fact that pricing is really all about supporting your marketing strategy.  While your strategy involves knowing your market, competition, cost, customers and more,  this post will focus on basic types of pricing a contractor can use and how they are intertwined with your marketing strategy. Strategy usually centers on one of two objectives. Simplified, the first is a primary demand based objective and it says you are trying to get new to the market customers or [...]

Impact of Price Reduction on Your Gross Margin

Discounting your prices dramatically impacts the gross margin you will earn on a project. Everyone loves a sale, everyone loves a deal. But when your business reduces your selling price by even a small percentage it takes a large bite out of the gross margin dollars you will earn. Remember, gross margin is your selling price minus your total cost of goods sold. Out of the total gross margin dollars you generate, you need to be able to pay all [...]

Understanding Gross Margin and How it Can Make or Break Your Startup

Landscape Today: This article is from the Small Business Administration - Caron Beesley is a contributing writer to the SBA.  Please see our article about how reducing price by only a few percentage points dramatically impacts your gross margin. By Caron_Beesley, Contributor Published: December 19, 2011 Updated: January 9, 2013 It may sound obvious, but understanding gross margin is often overlooked by startups and new business owners. This can have a direct impact on your ability to effectively manage a growing business, price your products, and [...]

Getting Started With Pricing

How a company prices its products and services is one of the most critical determining factors in determining a company's ability to make a profit. Pricing strategy and the elements that go into determining prices can be very complex. The task is even more difficult for the small business owner who wears so many hats during the business day.  Some of the most successful landscape companies will tell you that how you calculate your pricing in the bidding and estimating [...]