Cost plus pricing is the seen as the logical approach for the business model, but in retrospect it actually causes your business to lose money. Our bookkeepers for small business in Sydney will tell you why this method costs you money.
Even though cost plus pricing is seen as fair for all customers and does not discriminate against social status, it does leave money on the table. Employing this method does not take into consideration human psychology and you aren’t maximising your profits. The reality is that you should be charging what your customers are willing to pay, an example of an establishment maximising their profits are hotels and fast food chains, a soda costs $0.10 to make yet they charge $2, they are maximising their profits.
Our small business bookkeepers in Sydney can teach you how to move away from your current cost plus pricing strategy. It will let you see that if you price your products and services on customer value there will be a surge in profits.
Trying to implement this new strategy can be difficult, so our bookkeepers for small businesses in Sydney are willing to help you manage your accounts and give you advice on how to tackle these rough situations.