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February 28, 2017

Extra Time Means Extra Cost

As soon as your customers start making changes requiring more of your time, the cost should change as well.

extra time means extra cost

Figuring out how much to charge for your product or service can be difficult regardless of the type of business you’re in. That’s one reason I’m so excited about my new Profit Potential tool! This tool asks a few simple questions about your business or business idea, and within minutes, you can see your Profit Potential for each month and for the entire year!

But even once you set your price, a common scenario can occur:

For example, let’s say you bake cakes, and a customer emails you for a price quote on a small white cake with decorative balloons.

You tell them it will be $14.99 plus tax. They agree and pay for the cake.

Two days later, you get another email asking if you can make one small change. They want the cake to be half chocolate and half white cake with fresh strawberries in the center.

“No problem,” you say.

A day later, they email again. This time, they want the cake to be sugar-free and gluten-free. And instead of balloons, they want a portrait of their dog made out of icing.

This is no longer a $14.99 cake!

As soon as your customers start making changes requiring more of your time, the cost should change as well.

Going above and beyond for the customer is a good idea from a service standpoint. But when you’re losing money, wasting time, and having customers take advantage of you, it’s bad business.

The moment a customer changes the scope of their order, the cost needs to change as well.

Extra time always means extra cost. And since the customer is the one making theses extra requests—and you are the one trying to stay in business—the customer needs to take that cost.


So—how much can your business make? Find out now (for free!) with the new Profit Potential tool!

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  • Ruth Ellyn says:

    Hi, I have an MFA, and a Desktop Publishing Certificate, and even went and received a CDL Class A, Hazmat/Tankers/Doubles Triples, have a Security Guard Card, First Aid, CPR/AED and a Food Handler’s Card, worked as a Medical Assembler for 2 years. I have had over 65 jobs in ten years. Pretty much do not contact many people due to such poor track record. Seems I give 100 percent, and have no endurance. If people are not happy, I just move on thinking I am the problem, but I am the one they call when they need someone to fill in. Even applied at Dave Ramsey, that is how I heard of you. Seems what I am trained for, I do not have the courage to believe in myself and follow through. My children do not have contact with me, I do not do drugs, smoke, swear, I attend church, and am financially free, but had to go on disability because doctors thought I should because I can not maintain employment. Found out I have Sleep Apnea just a year ago. Was working two full time jobs to get debt free and hallucinated, so got help. Was up for over 44 hours. I wanted to move to North Dakota only 3 percent unemployment. My husband is debt free thanks to Dave, he has spent 21 years in the Military, very stable. My best friend is debt free from being a true Christian, 35 years retired fork lift operator in the days when women just were not. She survived a stroke, she was a vegetable, was not given anything else for a diagnosis she was so bad, did not know the difference between food and a napkin. Now she volunteers at church, works out, keeps her house clean, loves her dog, has Christian sisters for 71 years, and can not thank Jesus enough for changing her life. I just feel void, and can not find a niche. I hope I am not bothering you.

  • Tami says:

    Hi, Ruth! I don’t work for Business Boutique, but just saw this! I think my first question to you, if we were face to face would be, what do you like doing? Are you passionate about anything? Perhaps if you were able to pursue a job and work in something you really cared about, then you would be able to stick with it? (I think your self-diagnosing that you remove yourself from the situation when others are unhappy can be a big help for you to stop doing that, and force yourself to work thru conflict/disappointment/uncomfortable situations in the future). I’m sorry I can’t do more than let you know that you have been heard, and that right now, I’ve asked God, our Father who cares about us and knows us inside and out to help you in your specific situation today (I see your comment is from earlier in the month!).