Many of us resist the idea of raising prices for fear that our customers will go elsewhere. We may think that price is the deciding factor behind most buying decisions, but this isn’t true. Buyers pay for a combination of value, service and convenience. So, raising prices may be an ideal strategy to improve your profitability.
Take a look at the following chart:
|1. If your present profit margin is…|
|2. And you increase your price by…|
|3. Your sales would have to fall by the following percentage before your profits decline…|
Being successful is not just about lowering prices! In small businesses, it is about the value you add to your customers, as well as being different, that is important!
Concentrate on adding value to your clients and all else will fall in place just as you want it.
If you would like help with getting your pricing right and increase your profit, why not get in touch with us on 020 7038 8046 or email: firstname.lastname@example.org