Now that you know your customer and solution, let's figure out how you'll actually charge for your value.

There are three main ways local businesses make money, and choosing the right one affects everything from cash flow to customer relationships in your community.

Engagement Message

Which revenue stream feels more predictable for a local business: one-time payments or monthly recurring payments?

First is the Transaction Model - customers pay each time they buy. Think neighborhood coffee shops, local auto repair, or corner barbershops. You get paid per purchase, but income varies month to month.

This works well when customers need your solution occasionally or want flexibility to try your local business before committing.

Engagement Message

Name one local business in your area that uses the transaction model.

Next is the Subscription Model - customers pay regularly (monthly/yearly) for ongoing access. Think community gym memberships, local CSA boxes, or neighborhood dog walking services. Predictable income but requires ongoing value delivery.

This works when customers need your solution continuously or benefit from regular engagement with your local business.

Engagement Message

Can you think of a local subscription service in your community you'd consider paying for?

Finally, the Service Model - customers pay for your time, expertise, or custom work. Think local business consulting, freelance graphic design, or personal lawn care. Often hourly or project-based rates.

This works when customers need personalized solutions or your unique local expertise.

Engagement Message

Which model sounds most appealing for your local business idea?

Now let's talk pricing psychology. Most local businesses price based on their costs plus markup. But smart community businesses price based on the they create for customers.