One of the most commonly asked questions I see in any of our stationery groups, is always focused around pricing. It is probably one of the hardest parts about being a business owner, finding that happy spot with your pricing that isn’t too high and isn’t too low and still allows you to maintain your bottom line.
Now add in a billion different options that we run into as stationers (different papers, ribbons, print methods, etc) and the numbers can quickly get overwhelming.
Did you know that a product based business (a physical product you’re having to make) that your net profit should be a minimum of about 60%.
That means if you’re client pays you $1,000 for a product, you shouldn’t spend more than $400 creating that product, and you “pocket” $600 (but let’s be real – you don’t even pocket all of that since it needs to be divided out to Uncle Sam, business, savings, etc). But that’s a whole other topic! You can check out my blog post on How to Know Your Numbers in Your Stationery Business for more!
But that profit margin you’re aiming for is determined by your pricing.If you price too low, that profit margin will drop. If it regularly starts getting below 50%, you need to take a step back and reevaluate your pricing or your cost of goods with your suppliers.
Profit margins can easily creep up to 70%+ if you get into a good grove and run a lean business with low expenses and find great vendors to work with and are confident in your pricing.
One of the most important steps that you need to take first before worrying too much about your pricing is to determine your pricing structure.
There are two different pricing structures you can take in your business. There isn’t a right or a wrong. It really boils down to preference and how you want to run your business.
In this free masterclass video below I will walk you through the two different types of pricing structures, pros and cons of each, and what I have used in my own stationery business over the last 10 years that has allowed me an average profit margin of 65-70% and allows me to put together proposals in about 15 minutes!
Sign up below to watch this free masterclass video on How to Determine Your Pricing Structure as a Stationer
Did you enjoy this? I sure hope so! Be sure to also check out our Profit Percentage Calculator that allows you to easily track your profits on each project!
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