First and Foremost is having a product or service that your customers want and will keep coming back for.
Second is the profit margin you charge over the cost of sales. For instance, the restaurant industry has to consistently contribute 65 per cent or more of their sales to their gross profit before operating expenses in order to meet industry standard. Do you know your industry standard? What is your acceptable margin over cost? If your costs erode too much of your revenues, then three things might be happening:
1. You are not buying your inputs cheaply enough; and/or
2. You are not charging enough for your product or service; and/or
3. You are not doing enough to draw attention to your business and what it offers
Your challenge is to do your research and not be afraid to charge what your product or service is worth. If you indeed treat your customers with the respect and courtesy they deserve they will come back because you ADD VALUE to what you deliver.