Are you making as much profit as you think on the products and services that you offer?
I recently had conversations with 2 established business owners who didn’t realise that the way they calculated their profit margin was wrong and was in fact less than they thought it was. For one this came as a particular shock and I could see that it was dawning on him that he had been under pricing his work for years.
If you calculate your price based on making a specific profit percentage (profit margin) over your costs then please read this post to make sure you’re getting this right. In it I’ll take you through how they and you should calculate your profit margin, in order to receive the profit your business needs to make. Continue reading →