Episode A5.007 Audit the business to identify where to increase value and not reduce prices in the future

Introduction
For the past six weeks we have discussed the steps we need to go through as we enter Stage 5 - the period where we maximize the value of the business to either sell or self fund.  This is after a period of great revenue growth.
We’ve reviewed contracts, reviewed processes at every level and optimized all elements for profitability.  We have conducted a business valuation and now we are looking at how to maximize value without reducing prices in the future 

Have a great business week.
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Show Objectives - The Why
Customer acquisition vs customer monetization.
How to optimize pricing and who should be involved.


Key Issues - Owner Perspective:

1. Cost Plus Pricing
2. Competitor Based Pricing
3. Value Based Pricing

What You Need to Know - The What
    
      1.    Customer Acquisition Cost (CAC) versus Customer Lifetime Value (LTV)

1. Data on customers and competitors
2. Developing higher quality products
3. Great customer service

​What You Need to Do​​ - The How
Companies that successfully use value based pricing.

Shows

• Previous: Episode A5.006 Conduct business valuation for sale
• Next: Episode A5.008 Audit the business to identify how to increase revenue instead of reducing costs in the future 

Written by Ellen McIlhenny - CFO Plus Services - www.cfoplusservices.com

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