What's my business worth?Lately, we've noticed some small business owner's who were are designing websites for are confused about who their company is regarding their pricing.  We find alot of people saying that they can't compete on price anymore because there are too many other companies that are underbidding everything and their prices are below margin or some ridiculously low number that doesn't even make sense on how they can make a living charging.

Say our client, let's call them Reputable Services, has been in business for 15 years and stands by their product/services, treats their customers well, and was lucky enough to be around when the economy was looking nice.  Business used to be great and then the economy went bad.  Now let's say that Reputable Services now is in the position where they must go out and find new business.  

Well because of the bad economy, many other businesses are in this postion as well.  Let's say there is another company called "Stinky Pete's".  So Stinky Pete's likes to low ball every price for his product/service.  Their strategy is to beat all prices in town and therefore get the job/order everytime because "hey why pay more, right?"  So now Reputable Services thinks that Stinky Pete's is going to bankrupt his business because he keeps getting undercut on price.

Well, no.  That's not going to happen.  You see if you are ever wondering "how can they afford to price their product/service that low????", guess what.  They can't.  Every business is in just one business, the business of making money.  These companies forget one thing, customers aren't stupid.  We know as consumers that the lowball guy isn't going to produce a good quality product because why should he?  What's in it for them?  It's not profit, obviously.

So what IS your company worth?  I recently found this really good article:

The most important thing in understanding what your worth is understanding what your customers are worth.  Remember business is an exchange.  You are trading a service/product for a monetary figure of money.  The two items being traded must equal the same amount in value, otherwise the deal is a bad one.  So if Reputable Company prices his services for what they are worth in value they provide their customers, then they'll be just fine.

Simple CMS Design is happy to help you with your small business marketing.  We've been helping others succeed since 2009 and now we want to help you.  We know what our products are worth and we price them accordingly.  When you're ready to take your online marketing and Boise Web Design to the next level, call us at 740-1534.

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