Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners. These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.
I met with a client in the education business last week and he said he wanted to lower his prices because he was getting customer complaints. I asked him how many complaints he got. He said he got one complaint out of every four customers. I told him that’s perfect!
My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute.
Getting one out of four customer complaints to me means you’re pricing is right on. It is when you don’t get any customer complaints your prices are too low. I had another client in the service industry that wasn’t getting any complaints come to find out he was selling his products and services below cost.
Remember, the most successful business owners know their numbers.