‘Burnt chop syndrome’ — what is it and what on earth does it have to do with the success of your business?

  1. That we have inherited a mindset which says to get a successful business you need to sacrifice all first — we believe that we need the suffering to get to the success.
  2. We don’t calculate the right pricing from the get go, because we aren’t factoring in the cost for us to be paid. Natalie says we need to be pricing our services two to three times our running costs to make this happen.
  3. As Kiwi’s we don’t want to put our prices at a point where we truly see ourselves, as we’re worried about Tall Poppy syndrome. “As soon as we put our head above the parapet we expect tomatoes to be thrown, so we quickly pop our heads back down,” says Natalie.
  1. Setting your price to match your competitors. Because while this sounds great on paper, how do you know you are comparing apples with apples? They may have lower costs than you, a less premium product, or they might look great on the outside but aren’t making any money either!
  2. You work out your pricing as an hourly rate. (This is how I started). The problem with this is that as you add on team members, offices and other business costs, you can lose margin or start to lose money completely.
  • Cost based pricing — working out an accurate pricing structure that’s taken the true costs into account.
  • Charge on the value that people receive for the product or service (this is most effective for premium brands or services.)

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Rachel Klaver

Rachel Klaver

Content strategist. Host of MAP IT Marketing Podcast, Author of Be a Spider, Build a Web, coming out May 2022.