SteveBizBlog

Margin Creep: The Inflation Tax You’re Charging Yourself

Small Business Pricing Ideas / Decisions, Margin, Pricing Strategies

Insurance Ticks Up. So Does the Water Bill, the Bookkeeper’s Rate, the CPA’s Fee. None of It Feels Big Enough on Its Own to Justify Raising Your Prices, so You Absorb It, One Invisible Increase at a Time. That’s Margin Creep: Real Cost Inflation Eating Your Margin Because Nothing in the Ordinary Course of Business Forces You to Add the Whole List Up at Once. This Post Breaks Down Why Loss Aversion Keeps the Pricing Review off Your Calendar, and the One-Day-a-Year Habit That Puts You Back in Control.

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Why You Need To Understand Pricing Mechanism Types

Small Business Operations / Margin, Pricing Concepts, Value Proposition, Revenue Streams, Business Model Canvas

Pricing mechanisms come in two principal forms: fixed and dynamic. Fixed pricing has predefined prices based on a static set of variables while dynamic pricing changes prices based on market conditions. Price mechanisms can affect both your revenue stream as well as your costs.

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AI Image of magnifying glass to depict pricing at the margin

To Maximize Profit You Need To Understanding Margin Pricing

Small Business Finances / Margin, Pricing Concepts, Profit

The successful entrepreneur is one that keeps his eyes and ears open and takes stock of events happening around him. This is important not only to determine the margin price but to consider the impact potential events could have on the margin price in the future and develop contingency plans to deal with them.

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Capturing Value in Nontraditional Ways

Small Business Operations / Revenue Streams, Investment, Margin, Value Proposition

When I grew up in Massachusetts, I remember reading a story about Joe Kennedy. He would go up to owners of older drafty apartments in downtown Boston and make them a unique proposition. Many of the units were poorly insulated and cost a small fortune to heat in the winter. Joe would agree to insulate

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Keurig’s New Business and Economic Model

Small Business Operations / Business Model, Margin, Economic Model

Fifty percent of Americans over 18 years of age drink coffee every day. That translates into 150 million daily coffee drinkers that consume 400 million cups per day. Not long ago, brewing a cup of coffee at home or at the office involved purchasing a coffee pot from one company and ground coffee from another

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Who Really Benefits Most From Investments?

Who Really Benefits Most From Business Investments?

Small Business Operations / Branding, Innovation, Investment, Margin

I think we would all agree that making a profit is the incentive to take risk through investments. Moreover, it takes investments to stimulate innovation. But innovation creates productivity gains, which in turn eat into profit. For example, a tractor that costs as much as the labor cost for 150 workers, but which can do

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Immigration vs. Offshoring?

Small Business Operations / Margin, Outsourcing, Outsourced Labor

Labor is a major component cost of any product or service. The lower the labor costs, either the wider the margin or the cheaper the price of the product or service. Cheap labor can be had by either opening our borders to immigrants who are willing to work for less, or by outsourcing. I contend

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Is Offshoring Work to India and China Really a Bad Thing?

Small Business Operations / Margin, Outsourced Labor

Discover How Leveraging Global Labor—From Virtual Assistants to Developers—Combined With Smart Cost Strategies (Even With Tariffs in Play), Can Help Grow Your Business and Boost Personal Wealth.

Is Offshoring Work to India and China Really a Bad Thing? Read More »