Do you really know how to price your product or service?
What assumptions are you making about your costs? Are you pricing your product so low that you’re not making a consistent profit?
As Entrepreneur.com explains: “Generally, the more you know, the less risk you perceive. From that perspective, pricing is all about getting as much information as you can about your market, your customers and your own internal numbers that drive your profit.”
One way that owners get pricing information is by planning their costs, and investigating differences between budgeted costs and actual spending.
Assigning costs to your product is more difficult when each customer job is different. If you work in an industry that provides an estimate to each customer, you must use job costing.
If you’re not familiar with job costing, and you don’t know the full cost of your product or service, read on.