Pricing Strategy #1: Simply Put Your Price Up
Join Nic Clark in discussion on strategy #1: simply put your price up and do what most businesses are too scared to do.
Fear of negative client reaction is crippling most businesses from making a decent profit margin and in-turn … adequately servicing clients!To reduce the risk of this strategy and to test the validity of this strategy for your business, do the following:
- Increase prices for a select range of products and / or services,
- Increase prices for a select customer segment,
- Increase prices on a newly introduced range of products and / or services,
- Increase prices on an exclusive range,
- Increase prices across all products only,
- Increase prices across all services only, and
- Increases prices on all products and services.
Make sure you firstly brainstorm which of the above is suitable for your business and once you select a strategy you need to monitor the results actively.
Take into account the increased profit per sale from the increased price and how this compares to an allowable reduction of client numbers.
You need to monitor client reduction and / or increase and overall impact on profitability NOT impact on revenue as profit is the key driver!
Review other pricing improvement strategies through the Nic Clark site as they are introduced.