The Market Rules

The Market Rules

Have you noticed that everybody seems to have a view on what is your right price.

How often have you been told your price is too low and that you should raise them immediately?  They tell you you will make more money, the trouble is that if your customers don’t want to pay this figure they will look for someone cheaper and you will make less money!

This is because “The Market” has spoken.

Others under price their time or work, with the result that they become overloaded with too much work, which inevitably, also, leads to them starting to lose business, their cash flow dries up or  things look bad, or they start taking on more and more people, which works for a short time, but should the market change they will be the first to suffer, as their margins will be too low.

So how do you get it right?

Let “The Market” tell you.

The right price in your head may be one figure but if “The Market” doesn’t like it, it will tell you, either by giving you too much work or by giving you less.

This leads to the next question, how do you find the right price?

You ask, “The Market”.

To find the right price put your price in “The Market” then carefully examine the results. Then test it again with a different price, keep doing this until you reach the optimum figure. Now you have your price, which is the one “The Market” has picked for you.

Do not underestimate “The Market”, it always wins.

It is the same when you have to decide where to sell you product, put it in “The Market” and it will tell you whether the demand is there.  If it isn’t, change product or your target group to what “The Market” wants.

Remember “The Market” is the king, so listen to it, give it what it wants and you will start generating cash.

Now that’s Think Cash!