In This Episode:
- Fire + Mineral founder Tiffany Whipps shares how she’s gone from willy nilly pricing to pricing for the future of her company
- What her “feather money” phase taught her about the value of her products
- The future expenses she’s factoring into her pricing today
- What product-based businesses need to consider when they’re thinking about their pricing & business model
Pricing your products or services can feel like a game of pin the tail on the moving donkey.
There are so many factors to take into account. The price you choose needs to consider the market, your cost of goods sold, the positioning of your brand, the value of what you’re offering, and the cost of doing business.
Each of these pricing factors have their own challenges and potential pitfalls.
And just because you figure out the equation once…
…doesn’t mean you’ve solved it for all time.
The factors that influence price change over time.
Over time, the market changes, your cost of goods change, your brand positioning might change, the value of what you’re offering can change, and almost without a doubt the cost of doing business will change. And that all means that what you price your products or services at in the beginning will likely need to adapt to future circumstances.
But what if you could start to anticipate those changes? Could you build future changes into your pricing strategy?
Yes, I absolutely believe that you can.
As you grow as a business owner, you can start to anticipate market changes and plan for the way your cost of goods increases. You can set a goal to position your brand in a certain way and you can become smarter about your target market so you understand the value of what you’re offering more fully.
And perhaps most importantly…
You can plan for the ways your cost of doing business will evolve.
You can anticipate the team members you’ll hire. You can plan for the software upgrades you’ll need. You can build in margin to cover unforeseen circumstances or changes in the market that impact your bottom line.
Very, very few business owners do this from the start. But over time, you can get better and better at your pricing strategy—and even your overall financial strategy—so that you’re planning for the future instead of reacting to it.
And that’s exactly what I’m talking about with today’s guest, Tiffany Whipps. Tiffany is the founder and designer behind Fire + Mineral Jewelry. Tiffany has been designing jewelry full-time since 2012 and she’d be the first to admit that her pricing strategy has become a lot more sophisticated since she put together her first line sheet on a whim.
I originally invited Tiffany onto the show to showcase how money flows through product-based businesses. And we absolutely talk about that. But we also talk about how Tiffany’s approach to money has grown more sophisticated over time, as well as how she’s now pricing for the business she wants to have instead of the business she has right now.
Tiffany and I talk about how her pricing strategy has evolved over the years, why she’s focused on products that have more long-term value as opposed to what’s trendy right now, and how she’s using her goals to set prices for her new work.
Now, let’s find out what works for Tiffany Whipps!
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