Tax Season doesn't have to be hard!

Tax season can be overwhelming, but you don’t have to go through it alone. Purple Elephant Group can make your tax preparation simple and stress-free with the help of our amazing team, Lisa and Megan.

Here’s How It Works:

1. Download Our App: Get started by downloading our user-friendly app.

2. Fill Out Your Information: Easily enter your personal and financial details directly in the app.

3. Save your Code!

4. Upload Supporting Documents: Securely upload any necessary documents – no more piles of paperwork!

5. Connect with Lisa: Once you’ve submitted your info, Lisa will reach out to you personally to ensure we maximize your tax returns.

   
   

Self-Employed & Side Hustlers

Are you self-employed or running a side hustle? If you’re unsure about your numbers, don’t worry! Book a 2024 Cleanup ASAP to avoid overpaying on your taxes. Lisa and Megan are experts at identifying deductions and optimizing your filings to keep more money in your pocket.

Why Choose Us?

• Personal Touch: Lisa and Megan provide one-on-one support, making sure your unique tax situation is handled with care.

• Secure & Confidential: Your information is safe with us. We prioritize your privacy and data security.

• Maximize Your Refund: Our experts are dedicated to finding every deduction and credit you qualify for, ensuring you get the most out of your tax return.

• Hassle-Free Process: From start to finish, our streamlined app and professional team make tax filing effortless

Ready to Get Started?

Don’t wait until the last minute! Download our app today and let Lisa and Megan handle the rest. It’s quick, easy, and designed to fit seamlessly into your busy life.

👉 Download the App Now

If you have any questions or need a hand, feel free to reply to this email or give us a call at 210-665-4388. We’re here to help every step of the way!

Cleanup Consultation: Bookkeeping

Book Now

Pricing Part 3: Putting it all together

Alright, the final part of our pricing series is here! I know it might feel like a lot of information, but this is where everything comes together, and where your competitor market research* comes into play.

You might be thinking, “You said not to use competitors’ pricing.” You’re right—don’t copy their prices. Instead, use their pricing as a tool to gauge your own. For example, if your competitors are charging $25 per candle, you can use your formulas to show that your candle is actually worth more than $25. Pricing your candle the same as theirs would mean losing profit on every sale. However, their pricing gives you a benchmark to see where yours fits in the market.

Maybe your candle is bigger, or uses more expensive or organic ingredients, or your jars are reusable, and your wicks are non-toxic. These are all selling points* that justify the higher price.

So, what would be the perfect price in this situation? $42.00

Here’s how you get there:

1. Find the average of the high and low prices for each candle. Let’s say you have four numbers: $29.25, $44.25, $39, and $59.

2. The average of these is $42.87. To keep it simple, you can round it to $42 per candle.

   
   

Now, let’s talk about the psychology behind pricing. Some customers might think, “$42 for a candle? No thanks.” But here’s a trick: drop the price to $39, which is the lower end of your profit margin. This makes the candle appear as $30 instead of $40 to customers, encouraging more purchases.

By strategically setting your price, you not only cover your costs but also make your candles more attractive to buyers.

*The Hustle Smarter: Build Your Dream Business Course is launching on March 1st!

In this course, you'll learn how to conduct market research effectively, drive consistent sales, and identify your unique selling points. To determine if the course is right for you, please fill out the form below.

Hustle Smarter Course

Need more help on product pricing or figuring out some things for your business? Have a chat with us.

Business Advice Chat

Book Now

Part 2: Pricing with Profit Margin

Welcome back to our series on setting the right price for your product. Last week, we dived into Cost-Plus Pricing, exploring how adding a markup to your costs can help cover expenses and achieve profitability. This week, we’ll focus on Profit Margin Pricing—a strategy that offers greater flexibility and can align more closely with your financial goals and market dynamics.

Understanding Profit Margin Pricing

Profit Margin Pricing goes beyond simply covering your costs. It focuses on achieving a specific profit margin, ensuring that every sale contributes meaningfully to your bottom line. Unlike Cost-Plus Pricing, which adds a fixed markup, Profit Margin Pricing considers both your costs and the percentage of profit you aim to retain from each sale.

Why Choose Profit Margin Pricing?

1. Flexibility in the Market: Profit Margin Pricing allows you to adjust your prices based on market conditions, competitor actions, and changes in consumer behavior. This adaptability helps you stay competitive without compromising your profitability.

2. Alignment with Business Goals: By setting a target profit margin, you ensure that your pricing strategy directly supports your financial objectives, whether that's reinvesting in the business, expanding your product line, or increasing your savings.

3. Better Financial Planning: Understanding your desired profit margins aids in more accurate financial forecasting and budgeting, providing a clearer picture of your business’s financial health.

   
   

How Profit Margin Pricing Works

Let’s revisit our candle store example to illustrate Profit Margin Pricing.

Retail Price = Total Cost per Candle / (1 - Desired Profit Margin)

Retail Price = $19.50 / (1 - 0.50) = $19.50 / 0.50 = $39.00

In this scenario, to achieve a 50% profit margin, the candle store should price each candle at $39.00.

This means half of the sale price is profit after covering all costs.

Comparing Cost-Plus and Profit Margin Pricing

While Cost-Plus Pricing is straightforward, Profit Margin Pricing offers a strategic advantage by directly tying your prices to your profit goals. Here’s a quick comparison:

Aspect	Cost-Plus Pricing	Profit Margin Pricing
Basis	Adds a fixed markup to costs	Sets price based on desired profit margin
Flexibility	Less adaptable to market changes	More adaptable and responsive
Profit Alignment	Indirectly aligns with profit goals	Directly aligns with profit goals
Complexity	Simpler to calculate	Requires understanding of margin targets

Practical Considerations

1. Market Research: Understand what your customers are willing to pay and how your prices compare to competitors. Profit Margin Pricing requires balancing your desired margins with market expectations.

2. Cost Accuracy: Make sure all direct and indirect costs are accurately calculated. Inaccurate cost assessments can lead to pricing that either erodes your margins or makes your products uncompetitive.

3. Scalability: As your business grows, revisit your pricing strategy to make sure it continues to meet your profit objectives in changing market conditions.

   
   

Example Scenario: Fluctuating Sales Volume

Let’s see how Profit Margin Pricing handles different sales volumes using our candle store:

Scenario 1: Selling 500 Candles

• Total Cost per Candle: $19.50

• Desired Profit Margin: 50%

• Retail Price= $19.50 / (1 - 0.50) = $39.00

  
  

Scenario 2: Selling 250 Candles

• Indirect Cost per Candle: Increases to $24

• Total Cost per Candle: $5.50 (direct) + $24 (indirect) = $29.50

• Desired Profit Margin: 50%

• Retail Price= $29.50 / (1 - 0.50) = $59.00

With Profit Margin Pricing, when sales volume drops to 250 candles, the retail price should increase to $59.00 to maintain the 50% profit margin. While this ensures profitability, it highlights the challenge of maintaining customer satisfaction with significant price hikes.

Balancing Profit Margins and Customer Expectations

To mitigate drastic price changes, consider the following strategies:

• Volume Discounts: Encourage larger purchases by offering discounts for bulk orders, balancing higher prices with increased sales volume.

• Cost Management: Continuously seek ways to reduce both direct and indirect costs without compromising quality.

• Value Addition: Enhance your product’s perceived value through superior quality, unique features, or exceptional customer service, justifying higher prices.

Profit Margin Pricing provides a framework so your business meets its profitability goals while remaining adaptable to market conditions. By focusing on the percentage of profit you aim to achieve, you can create a pricing strategy that supports sustainable growth and financial health.

Stay tuned for Part 3: Finding Your Perfect Price Point.

Stay tuned, and don’t forget to subscribe to our email list to receive the latest blogs and business tips directly to your inbox!

Business Advice Chat

Book Now