Let me start this with a question. When you are creating your price list, did you base it on your revenue goals? Or did you kind of just pull some numbers off the top of your head and say “well that sounds good?”
Smart business owners know their numbers inside and out. They know exactly what is being spent and where because they have a budget and a business plan to help them reach their revenue goals.
They definitely don’t just decide on some random numbers for their pricing and go on about their day.
High revenue goals require high sales averages.
A lot of you may know that we have horses and toy australian shepherds. The horses and the dogs travel with us everywhere. Literally. Everywhere. They have their own space in the camper and I always find somewhere to keep our horses within a few miles of whatever campground we’re staying at. I come with a lot of baggage, and I’m thankful Tome can handle it!
Three of the five of our animals came from the same breeder. She’s in Southwest Oklahoma, about 12 hours from where we live(by the way I know some people don’t like when others buy from breeders, but I’ve always had purebred dogs. It’s all I know).
When we buy from this breeder we get a good high quality animal with a good mind and confirmation. She feeds high quality feed and does everything that’s necessary prior to sending them home to their new owners- vet checks, vaccinations, all the things. Plus they are well socialized and love people and being around humans.
The thing is though, she’s way more expensive than most breeders, horse or dog. And yet, I keep buying from her and I know lots of others who are on their 3rd, 4th, or even 10th animal from her. She’s able to demand the price she needs based on her CODB(cost of doing business), her total revenue goals, and her personal income goals.
She’s able to get returning customers in spite of the fact that those customers could easily go somewhere else for far cheaper.
The moral of the story.
What I want you to get from that quick story is that if your projected sales average, which we will get to in a minute, seems like it’s really high, you can still demand the prices you need to hit those high averages.
All you need is a solid business plan with a great client experience and a product or service to back those prices up.
If you can back your prices up, your revenue goals will be easy to hit.
The #1 Way to Hit Your Revenue Goals
If you’ve used my Full Time Formula, which helps you plan your business based on your income goal, then you know that in order to hit your revenue goals, you have to use a little bit of math.
And if you haven’t used the Full Time Formula, then you need to check out this IGTV where I go through it step by step.
This formula gives you a few important numbers:
- Total income
- Total revenue
- Your yearly schedule based on your lifestyle
- The number of clients your business can handle each year
Those numbers help you determine your sales average. When you know your sales average, it’s easy to create a price list based on sales psychology to guide your client to purchase the average you’ve calculated.
How do I determine my sales average?
Well, here’s the formula: Total Revenue divided by yearly client load and that equals your sales average.
If you need help determining your sales average, you can do one of two things. The first is check out my Instagram Live this week at @itstracylynn. I am going over the formula to calculate your sales average.
Or you can book a FREE Action Planning Session. In an Action Planning Session, we go through the Full Time Formula, how the Dream Biz Formula applies to your business, and what’s the best and EASIEST course of action to transform your side hustle business into a full time, automated, & profitable machine.
By the end of the an action planning session, you’ll know FIVE things.
- Income goals
- Revenue goals
- Ideal yearly schedule
- Yearly client load
- Sales average
Plus you’ll have a plan to make it happen.
Tracy Lynn is a boudoir photogapher for brides-to-be in the St. Louis area, and a mentor + coach for photographers looking to level up their businesses with better systems and processes.