Setting profitable pricing is one of the most important decisions you make for your pet care business. How you determine your pricing is often the difference between feeling financial frustration and confidence in your cash flow.
We have three quick tips that can set you on the path to profitable pricing.
- Raise rates every year – you don’t have to raise for all your services, but definitely for one of your key services annually
- Monitor the impact of your discounts – the cumulative impact of multiple pet and dog daycare package day discounts can quickly consume your profits. Make sure that the discounts you offer benefit your business and cumulatively don’t exceed 20%…10% is even better.
- Know your data – the most important pricing strategy is cost plus profit. This means you know the full cost of providing your core services and set your pricing to cover that and a profit of at least 20%. It’s important that you understand and consider both the direct or variable costs and your fixed costs of providing pet care services.
For more details on implementing these tips in your business watch our video. We enjoyed going deep discussing these tips and answering questions from our community. Profitable pricing is key to setting up a sustainable pet business.