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How Much Should I Charge?, by Ellen Rohr
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Are you pulling your selling prices out of thin air? Do you call your competitors and pretend to be a customer to find out how much they charge...and then charge the same thing? Get Real! How Much Should I Charge? Shows you how to price your services so you’ll make money-as much money as you want-on every job! Forget “what the market will bear!” To heck with the “going rate!” *Learn a super simple formula for creating a selling price. *Make sense of budgeting and sales forecasting. *Do what you love . . . and make lots of money! It’s easy, it’s fun . . . it’s basic accounting! Praise for How Much Should I Charge? I’ve just finished your book. Without a doubt, this was the best twenty bucks I’ve spent in years! The information is worth a fortune. I wish I had known some of this stuff five years ago, but like a lot of other contractors, I’ve learned the hard way.” –Jeff Swanson, Mr. Rooter of Western NC Ellen Rohr’s book is a must-read for anyone who is trying to make it in business today. She writes what could be a dry-as-dust subject and makes it fascinating and fun. The woman can write! My only complaint is that I wish she had written it sooner.” –Dan Holohan, Holohan & Associates
- Sales Rank: #1021670 in Books
- Brand: Brand: Bare Bones Biz, Inc.
- Published on: 2011-03-24
- Original language: English
- Number of items: 1
- Dimensions: 10.00" h x .26" w x 8.00" l, .53 pounds
- Binding: Paperback
- 114 pages
- Used Book in Good Condition
About the Author
Ellen Rohr nearly sank her family business! Then, she learned how to energize a simple business plan and make lots of money! She is a columnist for lots of trade magazines – providing “in the trenches” insight that business owners can relate to. As president of Benjamin Franklin Plumbing, a home service franchise company, Ellen helped the company grow from zero to $40 million in sales, 47 locations, in less than 2 years. Ellen is the author of The Weekend Biz Plan, and three other books: The Bare Bones Biz Plan, Where Did the Money Go? and How Much Should I Charge?
Most helpful customer reviews
60 of 61 people found the following review helpful.
Five stars isn't enough For this book
By H.K.
I've been a self emplyed remodeling contractor for 10 years. I've read lots of business books. This one is, in my humble opinion, one of the best.
In "How Much Should I Charge" Ellen Rohr explains the folly of setting a price for your professional services based on the going rate (what others are charging for similar services).
Quoting business sage Frank Blau, she makes the point that being "Busy is easy. Profitability is difficult. And there is only one way to be profitable. Charge more for your services than it costs to create them."
Yeah, it's a basic point, but do you know what YOUR break-even cost per hour is? I didn't either, and that's a common problem in the service trades. If you don't know your costs of being in business, how can you determine a realistic price for your services? A price that allows you to get ahead, not just tread water.
In this book Ellen tells you how to create a selling price based on real numbers. She explains things like overhead and budgets and profit and billable hours and all of that. And the really commendable thing about it is that she manages to present all of this information in an entertaining, easy-to-read maner. There is a lot of rock solid common sense and fundamental business wisdom here and it's not boring or hard to follow like in so many other business books.
You can't read this book without being challenged to reevaluate the approach you take to pricing your services. For most service professionals, that's a reevaluation that is sorely needed.
In short, Ellen's excellent book tells you how to take control of your business; to get in the drivers seat and take it where you want it to go based on real costs of doing business, your own special talents as a service professional, and your own personal goals and dreams in life.
I'd like to share one particularly poignant passage from the book. It is profound. It is true. It's something I can relate to.
"Add up all the real costs of running a business. And charge a selling price that will cover all those costs plus generate a solid double-digit profit for the company. Don't sacrifice everything for the sake of keeping your prices low. Because, when you compromise yourself and your family's well being for the sake of your customer's wallet, something nasty happens. You start treating your customers like dirt.
When you make a great living doing the wonderful work that you do, somethiing marvelous happens; you treat your customers like gold! You thank them for providing you with such a nice living. You go out of your way to do nice things for them."
Some people will find what Ellen says about pricing to be provocative. Some will argue that her system can't work in their business or their area, or whatever. These are the people who equate "busy" with success,but who, despite their busyness never seem to get ahead financially like they would like (and should).
The fact is, Ellen's approach can and does work. I'll vouch for it. And I know there are successful service professionals all over the nation who will vouch for it. To succeed in business without a firm understanding and application of Ellen's pricing principles would be sheer luck.
I'll close with another quote from the book:
"Until YOU change, nothing will change for you"
Get the book. You'll be glad you did.
23 of 24 people found the following review helpful.
Funny reading, easy to understand, and super results!
By J&G
I have been reading several books on the science/art of pricing products and services. I actually ordered this book by mistake. (Sorry Ellen!) The cover made me think it was too goofy, to "entry level" for me. After all, I have been in the consulting business for years. But, I could not put the book down. It took me less than a day to get through the book and the exercises Ms. Rohr included. The manner in which this book is written, a story of a lady interested in starting a business and talking with her business savvy friend, is fantastic. By the time I was done my jaw was on the floor. I was astonished to see the true cost of running my business laid out before me. Figuring out my "break-even point" was a real eye opener and has drastically affected the rates I now charge for my services. The value of this book to anyone struggling to effectively price their goods or services will far outway the cost. The information Ms. Rohr provides can be applied to any industry / business.
3 of 3 people found the following review helpful.
A must for all creative people trying to make a living.
By G. Sellers
Wow !! Finally a helpful book. Being a potter and making each item by hand has always caused me to ask "How much should I charge?". After years of searching for help in this area I came across this wonderful book. Those with MBA's may not need this book, but those of us with BFA's, MFA"s and just plain creative talents will find this book very educational. Ellen's easy reading style and logical approach to pricing makes this book a "must have". Many myths about pricing are pointed out, like charging what every one else does or what the market will bear. If I am to make a living creating handmade items it is important to identify my customer and realize I am not competing with mass produced products. Thank you Ellen for putting me on the road to profitablity.
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