AboutLee Lister Expertise If you are a serious entrepreneur and want to set up your own business or ensure that your existing business is more profitable then let me assist you. I answer questions on business start up, business strategy, business models, business planning, marketing plans, marketing strategy, branding, business tune ups and business improvement. I do not answer any legal or accountancy questions - you should see your own professional adviser about these. If you cannot be bothered to read and rate my answers - I can't be bothered to answer yours!
Experience Over 20 year’s management, IT and business consultancy experience with businesses large and small as well as being a serial entrepreneur.
Publications A prolific writer and published author, I write on entrepreneurship, project, bid management and career improvement.
Education/Credentials BA (Hons) Financial Economics
Numerous Management Qualifications
Question Hi Lee,
Based on my analyst work experience, I am considering starting up 'research and analytics' reporting service. As a new business owner Im bit confused on how to establish selling price of the reports I will develop and sell. I mean, each report I put together has data and information from different sources (Ofcourse we source them)we are subscribed to.
As an example, our monthly 'economic report' has international economy info that we collect from different sources and it costs us around around US$ 5000-8000 a year. In addition, we also include monthly real estate data which costs us around US$ 5000 per year. To put it plain and simple, one monthly report will have information from sources for that cost us around 15000.
In your expert opinion, what business model should we follow to establish price for reports so that we can recover the 'subscription' and data acquisition costs?. Appreciate any ideas and suggestions.
Sincere Regards,
Ricky
Answer Hello Ricky
There are two ways to price your reports:
1) Look at the market and see what other simmilar reports cost. Then include information that you can afford to put in at this price.
2)The harder way is to calculate how many reports you think you will sell in a year. Add up the cost of providing the costs and then divide this by the number of reports. Now add a percentage for your profit. The profit should cover your management costs for running your business for a year and giving you a fair income. You should then compare this cost with the market. If you are below the norm - then add some more to the report or sell it on it's low price. If you are above the norm the sell it emphasising the quality and quantity of information - or adjust your prices.
It might be an idea to have a cheaper price report to tempt your customers and then have a higher price item as an upgrade. You might be interested in this article of mine.
Ms Lee Lister
The Biz Guru
author of "How Much Does It Cost To Start A Business?" a massive collection of all the questions I have answered! http://www.startmynewbusiness.com/books.htm
