Freelancers become their own bosses to control their income, set their rates, and finally escape the salary caps of traditional jobs. So why are so many now handing that control straight over to a machine? Why trade the boss who capped your pay for one that’s now setting your income using the same tool you asked last week, “Why does Instagram keep cropping my carousel?” or “What even is the aspect ratio for Reels in 2025?”

I’ve been watching too many brilliant freelancers and creative business owners hand over their pricing decisions to AI and it’s not only costing them money, but confidence in what they charge.

Don’t get me wrong, AI is brilliant for so many things. On any given day, the titles in my ChatGPT sidebar sound like the inside of my brain at 3PM: “Dinner Ideas,” “Birthday Card Copy,” and “Instagram Aspect Ratio Fix” (because that latest IG update completely wrecked my feed layout). But when it comes to pricing your services? That’s where things get messy, and potentially very expensive.

AI pricing sounds clever, but it’s not strategic

AI tools are trained on patterns, not profits. They trawl the internet, average out all the data they find, and spit back a number with absolutely zero context about your actual situation. Sure, it’s quick and feels efficient, but it completely misses the things that matter most; your income goals, your capacity, your delivery model, and most importantly-the actual value of the results you’re providing to your clients.

It keeps you stuck reacting to averages instead of building a pricing model that reflects the way you work and what you want to earn. When AI looks at a market full of undercharging freelancers, it decides you should undercharge too. And just like that, you’re not leading your business, you’re following the lowest bidder.

It’s also surprisingly bad at math

Seriously, it sucks at math. AI is a language model, not a calculator. It’s trained to predict words that sound right, not compute numbers that are right. you may as well let a magic 8-ball tell you what to charge.

It doesn’t account for non-billable time, holidays, sick days, or admin. It just makes the maths sound plausible and plausible isn’t profitable.

It locks you into the lowest rung

This is the cost of treating AI like a pricing authority. Because it relies on what’s already out there, regardless of whether it’s working, you end up with recycled rates based on what undercharging freelancers are currently doing.

AI won’t challenge the status quo. It reinforces it. If you want to price like someone who’s done this before? You need to think beyond the middle of the pack.

It also sets you up for burnout 

Low prices mean chasing too many clients, taking on way too much work, and running at maximum capacity just to make ends meet. AI doesn’t understand the reality of client work, things like scope creep, the emotional labour of managing difficult clients, or all the time spent on client communication. 

Ok, so what do I do instead? 

Look, I’m not saying you need to throw out AI completely. But you absolutely need to take back control of your pricing decisions. Here’s how to do it properly:

Start with your actual numbers 

Begin with your annual income goal, add on your costs of doing business aka expenses, factor in tax, and time off. Realistically look at the hours you have to serve your clients and set aside time to work on your business. Calculating your hourly rate isn’t emotional, it’s logical, and it needs to set the value of your time so you can use it to build your spread of offerings.

Build offers that solve problems 

Stop charging for time and start charging for the problems you solve. Highlight the value your clients get, not just the task list you’ll complete. People don’t solve expensive problems with cheap pricing, and more often than not a lower price scares a smart client off than entices them.

Use AI after you’ve done the strategic thinking 

Once you’ve sorted your pricing strategy, then let AI help you with the implementation:

• Draft your service page copy
• Tidy up proposals
• Generate follow-up emails

But don’t let it take the lead for your pricing decisions. That’s your job.

AI is a tool, not a business compass. Let it support what you’re building, but don’t let it steer the ship. Getting your pricing wrong could cost you tens of thousands. You’re far too smart –  and way too talented – to work that hard for that little. Trust me, future freelance you will thank you for it.

The post Using AI to price your services? Here’s what you’re missing appeared first on Inside Small Business.

Hospitality isn’t short on challenges in 2025 – heightened costs, evolving customer expectations, and changes in consumer spending continue to test even the most experienced operators.

Hospo businesses are having to make some hard decisions to survive. According to Lightspeed’s Dining Dynamics and Hospitality Insights Report, 53 per cent have raised prices, 41 per cent have changed or renegotiated with suppliers, and another 41 per cent have adjusted their menus.

Unfortunately, these shifts can create friction with customers if they aren’t communicated clearly.

Two strategies are emerging as important for small hospitality businesses: flexible pricing and transparent communication.

Flexible pricing models: An alternate to raising prices

Flexible pricing allows venues to offer options that meet different needs, budgets, and occasions.

Take a neighbourhood café that offers smaller portions at lower prices. It’s ideal for lighter appetites, solo diners, or those looking to save – and it helps reduce waste.

A brunch spot might let guests add premium toppings like avocado or feta for a small fee. These upgrades feel custom, letting diners tailor their experience, and can help lift average spend per head.

At a wine bar, tiered tasting platters – small, classic, premium – can anchor value perceptions and drive upsells without pushy sales tactics. Similarly, happy hour deals or weekend surcharges reflect demand-based pricing in a way guests intuitively understand.

Almost half (41 per cent) of venues plan to offer tiered pricing or portion sizes in 2025, and 42 per cent plan to provide premium upgrades. When done well, these tactics can give guests more control over their experience, reduce decision fatigue, and encourage repeat visits — all while helping venues lift margins and manage costs.

Why clearly communicating pricing builds loyalty and reduces friction

A well-priced menu can invite curiosity; a well-explained one can build trust. In today’s climate, how you communicate pricing can be just as important as the pricing itself. Clarity removes friction, avoids awkward surprises, and shows respect for your guests.

Here’s how to make pricing communication work harder for you:

• Lead with clarity, not complexity. Avoid vague labels like “market price” or “seasonal surcharge.” Be upfront – for instance, “+$2 for locally sourced free-range eggs.” Customers can be more receptive when they see the value.
• Keep your pricing consistent everywhere. Whether it’s your physical menus, online listings, QR codes, or delivery platforms, mismatched pricing erodes trust. A quick check-in across channels can prevent confusion.
• Use visual cues and price hierarchy to guide choices. Just like bakeries display per item, sets, and platters to highlight value, menus can do the same. Clear formatting and a balance of price points help steer decisions without the hard sell.
• Train your team to explain the ‘why.’ Even the best signage won’t help if staff can’t confidently explain pricing. Empower your team to speak to the quality, sourcing, or portion sizes behind the numbers.
• Be transparent about surcharges and tips. Explain the purpose of surcharges and where tips go. Clarity here builds goodwill and can show your venue values fairness.

Pricing transparency isn’t just good hospitality, it’s a brand strength. It shows guests that your venue is thoughtful, consistent, and committed to the customer experience. When communication feels clear and considered, it builds trust – and trust keeps customers coming back.

The post The new rules of pricing: How to survive rising costs as a hospo biz in 2025 appeared first on Inside Small Business.

With the cost of doing business rising, seizing a share of your customer’s wallet is more important than ever. But many business owners cringe at the idea of asking their customers for money – and with rising living costs, it’s only gotten trickier to talk price without wincing.

Small-business owner Jasmine Parasram knows the feeling all too well. In the early days of running her design business, she struggled to quote her prices with confidence.

“I was preemptively discounting,” she recounts. “I would find myself going, ‘It’s going to be $500, but you know, it’s okay – just pay $250!’”

Inside Small Business Editor Mia Lockett talks to Jasmine in the second episode of The Small Biz Fix podcast about how the entrepreneur went from sales-shy to sales success. A key driver in this process, according to Jasmine, was to start approaching the “the money conversation” from a very different angle.

If you’re also struggling to talk about the cost of your services, here are some top tips from this episode to help you do it – without feeling awkward, pushy, or guilty.

1. Flag when you’ll discuss money at the beginning

Sales coach Frances Pratt – our industry expert for this episode of the podcast – recommends flagging “the money bit” at the beginning of the conversation, if it’s appropriate.

“The thing that I think is really useful for people is to flag it,” she says. “Then everyone can relax because they know that you’re not going to ask them to buy until ‘over there’.”

For example, let’s say someone has approached you to talk about your products or services. You might briefly walk them through how you handle this type of conversation: from understanding more about the customer’s problem, to exploring whether you can solve it, to talking about your products and services and what they cost.

2. Before you discuss money, make sure your value is clear

In the ideal sales conversation, the customer sees the monetary value of your product or service as irrelevant – because in the long run, they are saving money (or time, or stress) by purchasing it.

For this to happen, you should not only listen to your customer’s pain points, but revisit them before you discuss money. Thank them for sharing their challenges with you, review how your products and/or services could alleviate their challenges, and then bring up the price.

“Before I talk about price, I review the conversation with the client – because price is what you pay, but value is what you get,” Frances sums up. “We want them excited and engaged with getting the value that we’ve discussed through the solution component.”

3. Don’t assume that the client wants a lower price

Something that Jasmine Parasram had to internalise was that customers weren’t asking her the price so that they could swindle her, or get a discount. They were asking because they genuinely didn’t know.

“We’re taught from a very young age that if we see something with a dollar sign, the first thing to think is, ‘Can we afford that?’” Jasmine says. “But when we’re pricing our services, when we’re selling our services, we aren’t actually the ones paying the bill.”

Additionally, a higher price can signal that your products and services are truly valuable. If you discount, you might actually be eroding customer trust.

4. Know your boundaries

Jasmine shares that she puts up sticky notes around her office to remind herself of her boundaries. 

“I have one right in front of me at the moment that says negotiate the deliverables, not the dollars,” she says.

Negotiating deliverables and not dollars is a great example of a boundary you can set to avoid accidentally undercharging. If a customer can’t afford you, review services first – not the price.

“So if you come in and say, I’ve got a branding package for $5,000 with all the bells and whistles, maybe they don’t need all of the bells and whistles,” says Jasmine. “Maybe they just need the bells.”

5. The first quote sets up your value

Often, the first price you quote is about setting up your value – not about being the perfect price for the customer. This first price sets the standard; it’s the baseline value of your products, services, and expertise. You can then negotiate deliverables from here.

Knowing your worth – and therefore being able to instill trust in the customer – was a recurring theme in this episode of The Small Biz Fix. It’s not just important for nailing “the money part” of a sales conversation, but all the rest of the sales process too.

Want to know more? Listen to Episode 2 above or on your favourite podcast app.

The post The Small Biz Fix episode 2: How to talk about money in a sales conversation (without the awkwardness) appeared first on Inside Small Business.

Almost half (44.9 per cent) of respondents to the latest BIG Small Business Survey reported increasing costs as a key challenge. One in five (18.3 per cent) said that price increases were “severely” impacting their business operations and profitability.

Respondents to the survey – which looks at the shifting challenges faced by small-business owners nationwide – also noted the areas where price increases were most severe. They mentioned insurance, utilities, rent, and wages as being some of the steepest expenses right now.

Hesitancy to increase prices

Despite soaring business costs, owners are largely reluctant to transfer the burden onto customers.

Only 15.6 per cent of respondents said they had a strategy in place to increase prices. Some were actively opposed to the idea – 10 per cent said they had no plans to make their products and services more expensive.

Solutions

What else can be done to lighten the business-cost burden? 

According to the survey, tax expenses were a major business cost for many small-business owners, and one of the major ways they said that the Government could help Australian enterprises.

ISB recently spoke to a number of small-business owners on which tax changes would really impact their businesses. Regardless of the tax, the common theme was that small-business owners wanted more concessions made for companies of their size.

“Small businesses under 20 employees that are service-based see their GST and PAYG tax components being over 12 per cent of their revenues each month,” said business coach Tom Adam. “The time has come to consider a scaled GST system to give small businesses a break.”

Tenacity through technology

The BIG survey highlighted technology adoption as one of the strategies that small-business owners are using to keep costs under control. 

The majority (63.6 per cent) of respondents viewed technology and AI tools’ impact positively. Many said that they were looking to increase their AI knowledge, with 46.6 per cent currently educating themselves on this technology via online resources.

Businesses are also turning to AI to bridge the gap in employees, with skills gaps and vacancies another key issue facing small-business owners today. The BIG report found that 38.4 per cent of business owners were struggling to find qualified candidates. Meanwhile, increased labour costs were impacting 41 per cent of businesses.

Despite these challenges, recent reports have seen small-business owners more positive this year. As business owners battle on, major parties are also courting their votes in the lead up to this year’s federal election, with the LNP announcing tax incentives and Labor recently bolstering SME support services.

The post SMEs face rising costs but don’t want to raise prices. What can be done? appeared first on Inside Small Business.

Money keeps the wheels turning

Money is a resource, not the sole driver of business. However, it’s essential to recognize that without sufficient revenue, a business cannot thrive. If your goal isn’t to generate profit, then perhaps a charitable endeavor is more suitable. Working for free isn’t a sustainable business model and no one invests as much energy in something for free than what they do something they’ve paid for. Therefore, having a clear money-making goal is crucial. The purpose of a business, after all, is to make money, enabling you to help people and create an impact effectively.

The day I doubled my prices (and got away with it!)

Increasing prices can be daunting, but it’s often a necessary step for growth. Early on in my own start-up phase, I was on a call with my business coach, incredibly excited to let him know I had meetings booked with five potential clients that day. My shock came when he suggested, “for fun, why don’t we double your price today”. Biting the bullet and trusting my coach I leapt at the challenge. My coaching package went from $1500 to $3000 in a split second, no change in the service I provided. Four of the five enrolled.

The lesson I learnt: By backing yourself and the value you provide, you demonstrate confidence and attract clients who are willing to invest in your services and might I add, they usually achieve better results.

Why you should increase prices

Contrary to intuition, higher prices can make selling easier. When customers see a higher price, they often perceive greater value and are more invested in the product or service. In today’s evolving market, longer-term relationships with trusted brands are becoming increasingly valuable. People crave reliability and longevity, making higher-priced, long-term offers more appealing.

Embracing your value and the transformation you provide

Embracing the value of your products or services is key to confidently raising your prices. Understand that your offerings aren’t just about the features they provide but the transformation they facilitate in your clients’ lives. When you recognise the profound impact of what you offer, you naturally exude confidence in your pricing. Take the time to articulate the unique benefits and outcomes that distinguish your offerings from the competition. By clearly communicating the value your clients will receive, you empower them to see the worth in what you provide and justify the higher price point. Remember, when you believe in the value of your offerings, your clients will, too.

Creating your high-ticket offer

When considering pricing strategies, it’s essential to start with your high-ticket offer. Just as Elon Musk launched Tesla with a high-priced Roadster before introducing lower-ticket products, beginning with a high-value offer sets the stage for success. Lower-priced offers can then serve as entry points to your high-tier programs, creating a sustainable business model.

Understanding the significance of pricing and having the confidence to increase it are essential for entrepreneurial success. By recognizing the value you provide and effectively communicating it through pricing, you attract committed clients and position your business for growth. So, don’t hesitate to raise your prices and level up your business, not only better profits but more importantly, for increased impact.

The post How to increase your pricing and why you should appeared first on Inside Small Business.

Bricks-and-mortar shopping as strong as ever

Small retailers have often been the forgotten victim of the eCommerce boom, which disproportionately benefits larger retailers. However, bricks-and-mortar, for so long synonymous with small retailers, will be as in-demand as ever in 2024. According to Lightspeed’s Retail Insights & Shopper Sentiment report, 76 per cent of Australians continue to shop in-store at least once a month, while 56 per cent visit brick-and-mortar stores to see, touch, or try on products in real life before purchasing. For smaller retailers, focusing on your in-store strategy – rather than throwing all your eggs in an online basket – could pay dividends in 2024. Immersive or ‘experiential’ experiences, like DIY workshops, demonstrations, or classes can be low-cost ways to incentivise customers in.

Omnichannel, omnichannel, omnichannel 

Key for any retailer, irrespective of size, is being present wherever your shoppers are. In 2024, omnichannel will take on an even greater level of significance. According to our research, 45 per cent of shoppers research products online before visiting a store to make a purchase, while 17 per cent research in-store then purchase online. By being present both online and in-store, and making the two channels feel like one, businesses can ensure they’re discoverable and meeting the needs of as many shoppers as possible.

Think sustainably about sustainability

There is no bigger issue for our generation than sustainability. It’s not just an issue for policymakers or companies extracting fossil fuels, but for every business. Considering over two in three (69 per cent) Aussies either always or often consider sustainability when making purchases, retailers must take note. Nobody expects your small retail business to solve the issue, but by taking steps on a small scale – and then communicating them – your audience’s affinity to your business could grow. Increasing sustainable packaging, reducing wastage, boosting sustainable sourcing practices, and promoting the value of click-and-collect are quick, easy, and cost-effective ways to make a difference.

Pricing and promotions

Cost-of-living pressures have dominated headlines for 12 months, and will likely persist. In fact, our research shows that 33 per cent of shoppers are concerned that in-store pricing may be higher than online, while 38 per cent are discouraged by the inability to search for cheaper deals in physical stores as easily as online. So how can you treat pricing, promotions, and communication to your advantage? That’s not to say you need to engage in a race to the bottom. But by implementing transparent pricing strategies, offering price guarantees, and focusing on providing value for loyal customers, your business will be well-placed to strengthen relationships with the millions of Aussies that are fierce supporters of ‘local’.

Those are by no means the only trends that are expected to shape retail in 2024. For example, AI will grow in both adoption and impact, brands will use community-building and personalisation to drive loyalty, customers will prioritise retailers who provide more than their core product offerings – like free alterations for clothing retailers – and more. But for small retailers, capitalising on every trend isn’t a necessity; just focusing on the cost-effective, budget-friendly ways you can meet and exceed your customers’ needs.

The post The trends small retailers need to take note of in 2024 appeared first on Inside Small Business.

A recent GoDaddy survey of more than 500 Aussies with a side-hustle revealed many are confident their businesses will grow this year and shone a light on the practical steps they are taking to protect their profits. Of the side-hustlers surveyed, almost two-thirds were tipping their businesses to grow this year, with nearly a quarter predicting they would be successful enough to turn their business into a full-time career.

Further, one in five said they were so confident in their business that they planned to expand their online presence. Only two per cent of those surveyed expected their business to decline this year while more than a third predicted business to remain steady. So, how are they tackling price pressures?

One in three small-business owners said they had raised prices to offset the growing cost of doing business, while 29 per cent updated shipping costs or options. More than a quarter of those surveyed said they had invested in automation or technology. The survey also found:

• 15 per cent have pivoted from global to local selling.
• 14 per cent have taken out a loan to help with cashflow.
• 11 per cent have applied for government assistance or a grant.

How to handle a price rise

Most small-business owners will do their best to insulate their customers from price rises, but sometimes there’s no other option but to pass on some of the increase in costs. If you have to raise prices, honesty and transparency are the best policies. A note at the point of sale, on your website or through email marketing to explain the increase can help take the surprise away for customers.

Check your shipping costs

While free shipping can be a powerful marketing tool, transport costs can also represent a significant portion of an online business’s overheads. To manage rising shipping costs, consider investigating a flat shipping rate, taking a close look at packaging materials and sizes and check you are on the best deal. It’s also important to have a clear shipping policy on your website to avoid customer confusion. It is worth being upfront about shipping costs to reduce the risk shoppers will abandon their carts.

Harness the power of shopping local

The power of local became especially clear during the pandemic as supply chain challenges and the rise in online shopping encouraged consumers to support those businesses closer to home. Emphasising your local credentials and the benefits of local products through email and social marketing can help you build rapport and loyalty with your customers. Your website can have a local flavour with an Australian domain name extension like “.au” or “.com.au” or even a hyper-local extension like “.sydney” and “.melbourne” which can help build trust.

Boost your productivity with technology

Being a small-business owner usually means wearing many hats at once so any way to reduce the load can boost your productivity. eCommerce stores often have features that can help to manage inventory as well as free analytics and you can link your social media channels to your website to share content. It’s also worth making use of online templates for email marketing and social media assets to remove some of the design hassles.

There’s no doubt many small businesses are grappling with price pressures as the cost of living and doing business continues to grow. However, small-business owners have found many different ways to help navigate the economic turbulence and remain optimistic about the year ahead.

The post Four ways small-business owners are tackling price pressures appeared first on Inside Small Business.

As a result, everyday purchases – like raw ingredients and monthly utility bills – are becoming more expensive, making it more costly for small hospitality businesses to operate. Add to that the fact that consumers will likely spend less on non-essential items and activities due to the rising cost of living, it poses a question for small hospitality businesses: do I absorb the cost of inflation, or do I adjust menu prices and pass the expense on to customers in 2023?

Keep up-to-date on industry and economic trends

The first step is keeping up-to-date on price changes in the market and understanding rising inflation and its impact on suppliers. It’s crucial to understand what costs are increasing to make an informed decision that will benefit your business in the long run.

According to Business Advisor for the WA Government, it’s likely that freight suppliers, packaging suppliers, farmers etc. will look to pass additional cost increases to the next business in the supply chain. Like, for example, hospitality businesses. Therefore, always keep an eye on invoices and supplier pricing to plan and raise questions when necessary.

Carry out a financial health check

Conducting regular financial health checks is now more important than. Examine and analyse your most recent profit and loss (P&L) statement and compare it to last year’s reports. Look at the cost of goods sold, staff wages and rent. Doing this should paint a clear picture of which costs are increasing, by how much, and how that impacts the business.

Should menu prices absorb the rising cost?

There is no right or wrong answer. Increasing menu prices can be a delicate balancing act for many hospitality venues. With sky-high operating costs making it increasingly difficult to turn a profit, there’s also a risk of upsetting customers with increased menu prices. With price hikes happening across Australia, increasing menu pricing may prevent people from visiting venues as the extra cost puts them off. Whatever is right for the business, education, and communication are key.

Customer education is key

Research from CommBank found that 85 per cent of Australians intend to buy from local businesses to support them on the road to recovery. With an understanding attitude, Aussies still seem willing to support hospitality businesses, particularly if they appreciate why they’re being charged more for the same products. That’s why communication is essential.

How to absorb rising costs

Armed with data from a POS (point of sale system), businesses can carry out menu optimisation. This is a great way to maximise your margins and cover additional operating costs caused by inflation.

If specific menu categories are always a hit and have high-profit margins, a reduced menu featuring these categories and a couple of side dishes can be offered to customers. Or if certain dishes take a long time to prep and produce, they can be removed from the menu to speed up kitchen efficiency. Lastly, high-cost ingredients can be replaced with similar substitutes. Recently, for example, lettuce has cost up to four times more than usual, so many venues replaced this costly ingredient with cabbage.

The decision whether to absorb the cost or adjust menu prices is up to businesses and how they think it’ll benefit the business and their customers. However, the impact of whichever decision will be made can be alleviated through research, communication, and technology.

The post The dilemma of raising prices vs absorbing costs appeared first on Inside Small Business.

The the newly-released Purpose Premium survey, conducted by Porter Novelli and market research agency Quantum Market Research, which analyses purpose and reputation in the minds of consumers, employees and investors, also reveals that many Australians are increasingly worried about the cost of living, which has prompted them to prioritise “rational” benefits over “purpose-based” elements of corporate reputation. However, consumers remain deeply concerned about climate action, and following years of building frustration, expectations of brands and corporations in this area remain high.

When it comes to purchase decisions, the research notes that 47 per cent of consumers say they are loyal to price over purpose. However, at the same time, 88 per cent still agree that companies’ actions must align to their purpose, 74 per cent would only work for a company that has a positive impact, and 51 per cent reported they had divested from investments that did not align with their values.

“Australians are saying to businesses, ‘charge me less, pay me more, but invest more in ESG and sustainability’, at a time when many businesses already have their backs to the wall with out-of-control supply chain costs and a lack of access to talent and skills,” Porter Novelli CEO Rhys Ryan said.

“There has been a decade of performative purpose by companies saying they want to do the right thing,” Ryan added. “Now they are stuck in a real bind, as trust in brands is low, people want more, for less, and they still have the same high expectations on purpose. Business leaders need to meet these expectations while continuing to appease their major stakeholders, which is a real challenge.”

Quantum Market Research CEO Imogen Randell said that as Australians observe more and more goals and targets, but little in form of tangible action, they are increasingly sceptical of brands that don’t provide full transparency across their supply chains, ESG policies, or investment partners.

“It is easier than ever for Australians to find out exactly what a business stands for, while standing in the supermarket aisle, so ‘performative purpose’ is coming unstuck, as any whiff of greenwashing is quickly called out,” Randell said.

The study also notes a rise in scepticism, with 43 per cent of respondents agreeing brands are often pretending to be something they’re not. This was most apparent amongst young Australians, with 91 per cent of 18 to 24-year-olds reporting they researched some brands before purchasing its products or services.

“Consumers are tired of being told they need to make better purchase decisions,” Ryan said. “They want organisations to take the lead. This year, 62 per cent of respondents said agreed that brands know what they should be doing and want them to act on it. They don’t want to be ‘engaged in dialogue’ about it, they just want businesses to get on with it.”

The post Businesses facing more pressure as consumers demand more on pricing and purpose appeared first on Inside Small Business.

When launching a product, it is essential to get the pricing and promotion right. But first, it’s paramount to look at your finances so you know what you’re working with.

Financing the product

It is often the case that you begin by financing your dream and then need to secure a loan or investment to grow further. If you do decide to get a loan, it’s important to pay it off in full very quickly. Later on, you could look for outside investment in your product, but in the early stages, this is unlikely to happen as most investors only want to give money to tried-and-tested products. Even then, investment might not be for your business because it can compromise your product for profits.

Price

When it comes to profit margins and costs, you essentially have to work out how much it costs to produce and promote your product, and factor this into the price. Carry out some competitor research; what are their products priced at? Work out how much each product will make when you factor in production and promotion costs, as well as the cut your distributor or retailer is entitled to.

Place

To ensure the survival of your product it is vital to think about who you need to reach to get your product out there on the shelves. Then it’s time to source personal email addresses of the store product buyers or distributors because people only reply to a personalised approach. Sending an email to an address beginning ‘info@’ almost never bears any fruit. It will be time-consuming to track down the right email addresses, and you’ll probably be disappointed in the response rate. However, it is important to not give up. You only have to receive one yes and it could change everything for your brand. Hiring a freelancer to help share the load could be a worthwhile investment.

Promotion

Once your product has launched, you need to ensure that your promotions and communication are on point. Here are a few great ways to get your product out there to your target market and keep potential customers up-to-date with what you’re doing:

Newsletters

Newsletters can create a communication channel you didn’t expect, putting your product at the forefront of a buyer’s mind, and can increase traffic to your website. Once you have compiled a database of email addresses, sending out a regularly updated newsletter keeps potential customers in the loop, too. Take the time to make it look professional, using eye-catching graphics and revealing the latest news. You don’t want to overload the reader with information, so making it quick and easy to read is key. The aim is to inform them, not annoy them.

Samples

If someone replies, they will often want to know more, and fast. A press pack at the ready is vital to give them all the information they need. But nothing sells quite like a sample of your brilliant product.

Brand endorsement and celebrities

There is nothing like a celebrity endorsing a product as a way to boost sales. Sales can skyrocket within hours of a celebrity promotion and it’s a powerful way to secure free marketing. Today, Instagram is the place to find influencers for businesses.

In conclusion

There are many things to consider when it comes to getting the price and promotion right for your product. Remember, the first impressions of your product and brand count, so everything you do should reflect your values and ethos. Taking the time to make the all-important decisions isn’t time wasted, it’s essential for your product’s survival.

The post How to nail pricing and promoting your product appeared first on Inside Small Business.