Yay for horrible syntax
photo credit: R.B. Boyer

Being in business for yourself can make several decisions regarding your business difficult for you to make. One of the biggest things that business people have a problem with is setting prices for their services and products. They never really quite know where to start or go about it. Most think that the right approach is to add the costs of that particular service or product and then they add on a profit margin at the end, as stated on My Venture Pad.

The truth is that when pricing you should set a price based on the value your business, products and services offer to the customers. A big pricing mistake that people make is setting their prices due to the economy around them. I think this is a very bad idea, when the economy turns back around your customers will be use to those low prices.

Paying your sales people based on revenue stats rather than the profits that are brought in. These are definitely two different things, you may have great revenue to cover all of your expenses, but that does not mean your making a killing in the profit world.