Decoding Pricing Strategies: Maximizing Profitability for Your Business

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Join Aaron and Terry in this week’s episode of the 2 Regular Guys Podcast as they delve into the intricacies of pricing products. Whether you’re a new business owner or seeking ways to optimize your current pricing strategy, this episode offers valuable insights and answers to burning questions. Explore the influence of competition on your pricing decisions, learn tips for setting initial prices in a new business, and uncover often overlooked factors for ensuring long-term profitability. Discover strategies to assess your financial health, maximize profitability, and identify new revenue streams. Learn how to adapt to market dynamics and take in some best practices for maintaining a competitive edge. Tune in for actionable tips and expert advice on optimizing your pricing strategy. Don’t miss this episode as Aaron and Terry decode pricing strategies, equipping you with the knowledge and tools to make informed decisions that drive profitability and business growth.

Our regular listeners know this, but 2 Regular Guys are all about garment decorating, a bit of fun, and no rants, lectures, or selling. 2 Regular Guys was not created for our employers but rather for our industry. Since February 2013, The 2 Regular Guys have been the first and the most listened-to garment decorating industry podcast on this planet! We are humbled by all of you tuning in each week. We work hard to bring you information that will improve your business and our industry. Take a look at our incredible weekly guest list, and you’ll understand where this industry goes for news, interviews, and the heartbeat of garment decorating. Thanks for listening!

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Dad Joke

I started telling everyone about the benefits of dried grapes.

Just “Raisin” awareness

Pricing Strategies

Introduction (Aaron): Back on the 27th of January of this year you and I had a great conversation about the art of pricing. (https://www.2regularguys.com/the-art-of-pricing/) In fact, the show went 20 minutes into bonus time and we still didn’t cover all the stuff in our notes. We had marked that to come back to as pricing is one of the main struggles small business owners have. So we felt like this week was a great week here in the summer to come back and continue to dive deeper. We feel like we have 6 questions or areas we can explore to leave you all with some details to grow your confidence in pricing. This is one of the major areas we work with people on in Our Success Group, so I’m excited to have this discussion with you Terry!

Terry: Just about every screen printing class I teach for the past 20 years, early on a hand goes up with the question, “Will you be talking about pricing?” And a few, “Yeah, that’s what I wanted to ask too.” It can feel a little overwhelming, but in the end, it doesn’t have to be that complicated. We’ve put together these six questions and Aaron and I will both be commenting.  So Aaron, here we go.

Does it matter what the competition is charging?

• Yes, But ultimately NO – Importance of market research and understanding competitive pricing
• Unique value proposition
• Strategies to differentiate your business beyond price – Sell the Sizzle

Where do I start if I’m a new business?

• OVERHEAD – Everyone Has Overhead

What are some factors overlooked when calculating costs?

• Labor
• Cost that are not on the website
  • Inbound Freight, Carrying Costs, Spoilage, Packaging
  • Insurance and fees

How do I know if I’m making money?

• It’s about having systems in your business. Things that become part of your regular cycle.
• Regular Review of Budget v Actual
• Outsourcing Accounting

What can I do to make more money with the business I have?

• Price and Cost are two different things – Perceived Value
• Upselling, Cross Selling, Bundles
• Repeat business is more profitable.
  • Loyalty Programs
• Efficiency
• Focus on what you do best

How often should I recheck my numbers?

• Not a one size fits all answer
  • New businesses more often, more established businesses annually?

The Secret Sauce

We serve up bite-sized tips for our #regulators to instantly spice up their decorated apparel business. Just like the perfect wing sauce, these quick tips can transform your business experience, adding flavor and depth to your operations. Each video in this playlist is a nugget of wisdom, carefully selected for its potential to bring immediate value to your work. So, whether you’re a seasoned pro or just getting started in the decorated apparel industry, dip into our ‘Secret Sauce’ for insights that can help you soar. Remember, the right tip at the right time can be just the secret ingredient you need for success.