Profit is Not a Dirty Word

In a Content in Business Spotlight Session, Richard Langford, Director of Sharp Events Group, gave this bit of advice:

“Pricing is key. Profit is not a dirty word. You’ve got to work out your margins to make sure that you can profit.

“Don't be afraid of making your margins, standing your ground and walking away from jobs. When I first started I would say “Yes, I'll do it because I need the money” - I needed to build my business. But I value myself, my business and everything I do - I'd rather walk away and not be in the rat race to do things for nothing.

“Yes you can lower your price, but once you’re established, you shouldn't - if you offer value. The only way you can progress in business is by not being afraid to make profit. If you're good at what you do, the money will follow. Don’t be afraid to stand your ground. Be prepared to walk away, because you value yourself.”

It’s easy to be apologetic when submitting a price to a customer - or to have a cheeky feeling - like you’re asking for money. This should not be the case. As Richard says, if you’re offering value then the price you submit should be a good deal and the customer should understand why the price is what it is.

But it is important that you get your pricing right. Take the time to get on top of this - don’t price reactively (based on a customer request) - set your pricing proactively based on your operating costs, perceived market value and most importantly, your profitable margin.

Create your standard price list or rate, be comfortable and confident in it. Then when communicating it to customers, all you need to do is refer to it without having to rethink, and certainly without having to ‘feel bad’ about it.

Watch or listen to this episode of the Content in Business Podcast in full.

The guest’s quote has been taken from a podcast recording and edited for easier reader consumption.