Pricing Explained Simply
What is price actually for? Price does three jobs. It covers the cost of delivering. It funds the business so it can survive a bad month.…
One of three
Margin, cash flow, budgeting, pricing, payroll, and what a business is worth on the day somebody sits across the table with an offer. Money is where a man stops performing and starts telling the truth. Provision is a leadership function and almost nobody was taught the mechanics.
What is price actually for? Price does three jobs. It covers the cost of delivering. It funds the business so it can survive a bad month.…
What is net worth? Everything you own at what it would genuinely sell for, minus everything you owe at its payoff balance. The house at market…
What is cash flow? Cash flow is the movement of actual money in and out of your accounts. Not what you invoiced. Not what you are…
What is revenue? Revenue is the total money a business takes in from selling what it sells, before anything is paid out. Sales, turnover, top line:…
What is margin? Margin is the share of money that stays after the money that leaves. Sell something for a hundred dollars, spend seventy delivering it,…
What is runway? Runway is the number of months you can keep going if every dollar of income stopped today. That is the whole definition. Cash…