PROFESSIONAL OR HOBBY
THE STRUGGLE IS REAL
As I’ve talked about before, cheap or free is not professional. It’s not what a professional business or public figure should be looking for.
So with all that in mind I’ve put together a list of 5 things you need to consider when setting your prices. And undercutting your competitors isn’t one of them!
5 TIPS TO ENSURE YOU’RE CHARGING ENOUGH
If I had factored in my hourly rate for doing this, my bars of soap would have been selling at £10 each. There is no way they would sell for that. No amount of sales patter and pretty packaging would make up for it. So, my time had to take the hit. The craft makers amongst you will understand this pain.
You can read the UK Governments guide to VAT MOSS here
* I have no idea if these rules will change post Brexit
BANK AND CARD FEES
Likewise, banks love to lure you in with their free banking periods when you first start but after the initial 12 months, you’ll soon realise how banks are making their money. When you can be charged for just depositing money into your account it’s worth keeping an eye on ways you can keep these costs down.
COVERING ALL THE COSTS
If you use your car for your business are you taking all the costs into account? Or are you offsetting the depreciation at year end if you own the car outright and it’s a business asset? It’s not just the fuel you put in. What about the oil? The headlight bulbs? The valeting? It all mounts up.
Computers can be costly little items when you add in all the software, apps, subscription services. Are you accounting for them all?
And don’t forget inflation is real not just a news headline. Keep an eye on your costs as the years go by. I’ve noticed the past year that the cost of many of the subscription services I use have gone up quite a lot. This is due to the poor exchange rates we now have to suffer in the UK. Granted we don’t have a crystal ball so we don’t know what the future holds, but as Brexit looms, I suspect these rates will change a lot. Keep an eye on anything you pay in dollars or euros.
WHAT DID I MISS? HAVE YOU BEEN CHARGING ENOUGH?