Calculate variable costs, fixed costs, and break-even point

Calculate variable costs, fixed costs, and break-even point

I am often surprised, if not shocked, when I see teams making big impact pricing decisions without calculating the variable costs to fix costs and the break-even point. Let’s walk through an example of a flower shop. The flower shop generates revenues of 450,000 and spends 216,000 on flowers, 150,000 on salaries, 60,000 on rent, and 50,000 on other costs. As a result, the annual…

Set the best pricing with the 4C marketing framework

Set the best pricing with the 4C marketing framework

Pricing practitioners often use the four Cs: customer, costs, competition, and constraints to define a price. Regardless of whether you want to set your daily rate as a freelance photographer, or the price of your product, I strongly encourage you to systematically consider all four Cs in your price-setting process.  The first and most important factor is the customer. More precisely, the…

12 Simple Ways To Boost Your Creativity

12 Simple Ways To Boost Your Creativity

Creativity enables creative thinking (coming up with new ideas) and problem-solving (implementing ideas to make things better) – both skills that are highly attractive in the workplace. So, it’s no surprise that the World Economic Forum listed creativity as one of the ten essential skills needed to thrive in the fourth industrial revolution. (That’s in any profession…

Does marketing hold the key to finally addressing sales territory equity?

Does marketing hold the key to finally addressing sales territory equity?

Sales organizations have sought to create equal opportunities amongst their reps since the beginning of sales. Classic means of separating territories based on geography or industry are imprecise and create lumpiness in opportunities across your sales organization. When some reps have too much opportunity and others not enough, you’re account coverage and pipeline suffers. However,…