11-10-2025, 03:54 AM
One of the services I offer my clients is product development. Mostly, these are service products – training packages, corporate services, medical treatment packages, coaching packages, etc. A crucial part of the product development process is determining the right pricing for the product. The ‘right pricing’ must ensure that the company will be in a state of regular, positive cash flow once the products take root and start to sell.
My approach to the process is logical – not emotional. We start by looking at your outgoings, and differentiating between what is necessary and what is not. We look at all the ‘moving parts’ that more database comprise the operational ‘machine’ that is your business. Your website, computer, software, subscriptions, staff, admin assistance, office rental, travel, utilities, etc. are all part of that machine.
![[Image: more-database.png]](https://i.postimg.cc/zXfcYHn2/more-database.png)
If clients have got themselves into a situation where their business has become dependent upon credit for its operations, I encourage them to make getting RID of these debts (and not creating more debt) their FIRST priory. I believe credit card culture – and the vile propaganda that our financial reliability is measurable by our credit ratings – has done more damage to our ‘developed’ society in the last 50 years than just about anything else. What I’ve seen is that, more often than not,
eradicating debt is not so much a matter of making more money, but of overcoming the psychological and emotional dependency on credit.
I could get on a soapbox and go on and on about this (it’s something I touched upon in the book The 7 Graces of Marketing ), but for now, suffice it to say that to improve your cash flow, you have to cut up the plastic and then pay it off – all of it. Your repayments also need to be factored into your product pricing structure (but, of course, you have to make sure you actually use the incoming cash to pay the debts!).
Once we’ve looked at all your outgoings, we next have to consider how many customers/clients you anticipate being able to serve each month (I recommend being modest with this figure). Then, if we divide those total outgoings by the anticipated number of clients, we can see how much we need to charge for our services simply to pay for themselves (not even to pay us.
My approach to the process is logical – not emotional. We start by looking at your outgoings, and differentiating between what is necessary and what is not. We look at all the ‘moving parts’ that more database comprise the operational ‘machine’ that is your business. Your website, computer, software, subscriptions, staff, admin assistance, office rental, travel, utilities, etc. are all part of that machine.
If clients have got themselves into a situation where their business has become dependent upon credit for its operations, I encourage them to make getting RID of these debts (and not creating more debt) their FIRST priory. I believe credit card culture – and the vile propaganda that our financial reliability is measurable by our credit ratings – has done more damage to our ‘developed’ society in the last 50 years than just about anything else. What I’ve seen is that, more often than not,
eradicating debt is not so much a matter of making more money, but of overcoming the psychological and emotional dependency on credit.
I could get on a soapbox and go on and on about this (it’s something I touched upon in the book The 7 Graces of Marketing ), but for now, suffice it to say that to improve your cash flow, you have to cut up the plastic and then pay it off – all of it. Your repayments also need to be factored into your product pricing structure (but, of course, you have to make sure you actually use the incoming cash to pay the debts!).
Once we’ve looked at all your outgoings, we next have to consider how many customers/clients you anticipate being able to serve each month (I recommend being modest with this figure). Then, if we divide those total outgoings by the anticipated number of clients, we can see how much we need to charge for our services simply to pay for themselves (not even to pay us.