Know Your Numbers Before You Set Your Price
One of the most expensive mistakes a new business owner can make happens before they ever make their first sale.
It’s not necessarily having a bad product or being afraid to charge enough.
It’s pricing without knowing your real numbers.
I was recently on a podcast talking with a business owner about this very issue. When you’re starting out, it’s easy to look at what competitors are charging, pick a number that feels competitive, and start selling.
But there’s a problem.
What you charge isn’t what you get to keep.
There are taxes, sales tax, fees, and other business obligations. Expenses you may not even realize are coming.
We see business owners who forget to collect sales tax—or worse, don’t realize they owe it until that liability has quietly piled up.
Then tax season comes. Or the state comes calling. And that healthy profit margin they thought they had suddenly isn’t so healthy anymore.
Pricing isn’t just about what the market will pay. It’s about what the market will pay after you account for everything it costs to deliver your product or service.
Know your numbers before you set your price.
Because a price that creates sales but doesn’t create profit isn’t really a price.
It’s a problem waiting to happen.
At Fulling Management & Accounting, we help business owners get clarity around their numbers so they can make better decisions, grow their profits, and gain peace of mind.
Get Clarity. Grow Profits. Gain Peace of Mind.
Rusty Fulling