About this Course
It’s tough to make predictions, especially about the future.
The purpose of this course is not to give you some kind of magical formula for setting product prices. Instead, I’ll attempt to persuade you of the value of “little models” that allow you to ask useful “What if?” and “Under what circumstances?” kinds of questions. These kinds of questions will help you better recognize and test possibilities:
- How many items must I sell to cover my costs?
- For the amount of time I can commit to my business, how might I achieve my financial goals?
- How might my investment in personal productivity impact my take-home income?
Be sure to watch the course introduction video, “Why We Use Models.”
We designed this course for craft makers and artisanal manufacturers in particular. Throughout the course, we follow the example of a maker of hand knit, wool hats. In the second module, we use a simple Excel spreadsheet model in a fairly sophisticated way. Although prior experience with Excel or Google Sheets is helpful, it’s not necessary.
Join the Conversation
We invite you to engage us, your peers, and others in conversations about your business. If you have a question, please ask it – others will appreciate your curiosity and courage. If you have suggestions about how to improve this course, please let us know. We strive to do our best work, but we can always improve.
This is a self-paced course punctuated by two live conversations. Feel free to pick and choose among the lessons according to your interests, needs, and background. Lessons consist of a 1 to 8 minute video and supplementary material, including downloadable Excel models.
Pricing for Profit
In the first module, you will learn how to apply some basic concepts about product pricing:
- The Real Purpose of Profit
- Cost Plus Pricing
- Conducting a Comp Check
The lessons in the second module show how to use a simple model to estimate take-home income based on price and cost inputs:
- How to Download and Install Microsoft Excel 2016
- Overview of the Model
- How to Find Your Break Even Sales Rate
- Meeting Your Financial Goals with Constrained Time
- How to Value Efficiency