Small business startups urged to price goods sensibly

Small business owners are being warned about undervaluing the goods and services they are providing, according to a recent BBC article by George Derbyshire, the CEO of the National Federation of Enterprise Agencies.

Mr Derbyshire stated that it is imperative that new business start-ups get their pricing structure right from as early as possible. He added that charging less than the competition is worst possible marketing strategy, unless the firm has a "brilliant competitive advantage", however, in many cases this is thought to be unlikely.

George Derbyshire commented:

"Value yourself and your time realistically. Hobbies are great fun, but when you turn a hobby into a business remember it's got to support you and pay you a wage."

The article went on to urge small businesses to talk to consumers about the service or product on offer and tell them how great it is:

"When you have explained it, demonstrated it, or shown it, there comes a time when many customers will want to make a purchase."

He added that marketing is an essential part of any business and a company should not cut back on it, even during an economic downturn. This was recently backed up by Google's "Small business corner", created in response to user feedback to AdWords calling for more support and opportunities to share best PPC marketing practice with their peers.

Related articles:

Small businesses backed by Google
Small firms get Google’s help and support for PPC marketing.