So back to the matter at hand - these conversations about profit and business etc. You should know that I am not a profit-driven business woman. It is what it is. I much prefer to give something away, to someone who needs, values or desires the product or service than to sell...especially to sell at a very hiked up price. If I can make $10 off of something I'm just as content as if I can make $50. I consider it a strength and a weakness. [I know some people would suggest that I not be in "business" at all but I think there is a place for hearts like mine with a strong partner(s)/wise counsel ;)] With this in mind, as I planned the first event and provided the parents with a quote, I was strongly admonished that I didn't make sufficient profit off this event and if I really wanted to make money, I'm going to need to add a percentage or amount to each external vendor I use. Fine. I accepted that as wise counsel; I'm no dummy, I know I can't trade off items at cost and expect to make a profit, however the "problem" came about at the amount I was encouraged to add. I got a product for free, I passed it along to the customer for 1/4 of the cost, thinking I paid nothing for it so anything I charge is a "profit". What I charged ensures that all additional out-of-pocket expenses are now covered while still giving us a dollar to claim as profit. I felt I had heeded the previous advice given and was being a smart businesswoman. Apparently not; instead, I was advised that I should have charged full cost or very near to it. That bothered me...in fact it still bothers me. I try to be open to the advice of others and not be a know-it-all because I'm not. There are too many topics or situations that are completely novel to me. However, I've got a very healthy conscience that is guided/shaped by my personal convictions and it led me to begin to question where should the line between profit and killing the customer be drawn? What is fair and wise business ethics and what does the proverbially used car salesman look like in this line of business?
Oh, the joys of running a new business.
Last week sometime, in my personal devotion I read Psalm 37.
"It is better to be godly and have little than to be evil and rich. For the strength of the wicked will be shattered, but the Lord takes care of the godly. Day by day the Lord takes care of the innocent, and they will receive an inheritance that lasts forever. They will not be disgraced in hard times; even in famine they will have more than enough." Psalm 37: 16-19 NLT
You may be wondering what this have to do with my pricing dilemma? Well the reason I was instructed to "tax" the customers was to make a profit. The reason behind making a profit is to make money/get rich etc. However, the clash of beliefs come in that I don't believe the only way to become rich/live comfortably/make money is to make a profit. I believe that God is my financial source and He has a number of ways to ensure that I have all I need and even my wants (see here). Yes, making a profit is one way, but if this is to the harm of my "neighbors" (customers) then I believe it becomes wrong. On top of all this, as David so eloquently said in verse 25:
"Once I was young, and now I am old. Yet I have never seen the godly abandoned or their children begging for bread." Psalm 37: 25 NLT
It's only been 31 years I've been on this earth, 6 of which I have no recollection of, but I can truly attest to this verse above. Regardless of how bleak the situation looked: when daddy was not there and mommy was struggling alone with 3 kids; when blended family was created and two minimum wage parents had 6 dependents (all under the age of 14); when I was in the US at school...all 3 stories end the same way, I was never without. Someway, somehow "enough" came my way to ensure that whatever need was present - was met [legally].
So now stepping off of my soapbox and tying this all together. :) I think I had to have this conversation very early in the business life...Was all this necessary for this particular situation? Maybe not, but I think this was a lesson for me in defining what type of business person I will be, very early in this process. I needed this scenario and conversation to get my head in the right place, that is recognizing that my financial status is not limited to a profit from the customers of It's Girl Time. That I don't have to "kill" people to live, or even be successful. That I can be fair and still not "lose". God's always got my back. He is Jireh! With that said, [trying not to be holier-than-thou], I know that there is nothing wrong with earning a profit; I plan to. In fact, in order for the business to survive, we need to! There is also nothing wrong with marking up prices. However, for this business, mark ups will be added as deemed fair and not an opportunity to "get rich". When unique situations arise, as this one did, where we can provide a break to a person, we will determine what we need to break even, what we need to make a profit and will assess the final cost based on these factors. Basically, my motivation in pricing, will be fair and as much as possible, a win-win for us and for the customers.
Totally no judgment here. I'm not saying you have to run your business the same way. In fact, what would you do? Or for those of you who have already had situations like this- what have you done? Leave your responses below in the comments section. I look forward to hearing your thoughts, opinions, perspectives on this subject.
Grace peace and love,
Gia
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