Increasing profitability through pricing

There are several ways to increase your profit, but perhaps the best way is to get your pricing right. Understand that your pricing is for your costs and your risk, not just your costs.

Here are some simple rules to stick to:

• Don’t do work for free
• Price consistently - have a system and stick to it
• Have regular price rises. An inflationary price rise often does not represent true costs
• Never raise your price by more than 20%
• Make sure you have a walk away price

In addition, be firm with people on price. Charge extra for small jobs as they can often be more time consuming than you realise at the time. Spend time getting your fees right - it’s worth it.

Call in at your local TaxAssist Accountants for help. 

By Terry Murphy CPA

Date published 7 Feb 2019

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.