It’s no secret that small businesses play a vital role in the US economy. However, revenue for small businesses can be scarce.
For instance, small businesses that do not have any employees average just $44,000 a year in annual revenue with two-thirds of these companies earning less than $25,000 per year. While various factors can affect a business’s revenue potential, one of the most important factors is its pricing strategy.
To get this right, it’s critical to use financial reporting and insights to guide your decisions. You also need a good understanding of the many different pricing strategies that you can choose from for your product or service. We look at 12 common pricing strategies in detail below.