Synthesis, Inc. has tools and guidelines that allow us to analyze current pricing performance and to make recommendations for future pricing strategies that include the inevitable discounting. These guidelines have helped us to manage our growth, regardless of market considerations. We are now offering this same benefit to other businesses.

Whether you are a contractor who bids on jobs, a retail store owner selling directly to the public, or a consultant concerned about your pricing structure, we can help determine each level of profitability in each revenue bucket.  Pricing is dicey as we all know and it needs to include much more than direct costs. It can be a real science to determine the feasibility of discounting and correctly analyze mark-ups.

When we provide Financial Snapshots™ for businesses, there are a variety of tools that we utilize to provide you with information to help determine your future pricing.  Our results may include tables that take the guesswork out of discounting and mark up. Our results are in PLAIN ENGLISH and are always ones that ANY estimator can use, without the owner's direct input. Here is a sample: 

So what does something like this tell us? Well, that one price DOES NOT fit all! This may sound like a no-brainer to some of you. After all, who knows your business better than you do? However, many of us use a seat of the pants approach that was perfectly adequate when we started the business but may be falling short in today's times. Sometimes our SOTP method is a simple multiplying factor – take the widget and multiply it by 2.88 and you have your price! Done!

This picture is incorrect in a number of ways – 

#1 - IT NEVER HAPPENS! No one buys retail anymore – folks are looking for a discount. That 2.88 is quickly eroded to who knows what! And is that 'who knows what' enough?

#2 - Buyers are perceptive and competitive – if you think your target market is not using the web to compare your pricing, you may be right. But you are probably wrong. The web is informative and anymore, people feel that sellers are purely influential.  How many of you have researched the web before buying a car and then gone to the dealer?

#3 – Market considerations. Once construction starts tightening up – EVERYTHING tightens up and people start opening their checkbook less and watching the dollars more. This is a great time for people who know their pricing and correct discounting. This is a horrible time for folks who are deeply discounting to get the business, unsure whether this is going to discount them into poverty.

If you would like to learn more about our Financial Snapshots, fill out the form below for a FREE consultation to see what your Pressure Points are and how we can help you determine a successful year!

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