Pricing levels for your product or service is a dilemma many business owners encounter. Unfortunately, many businesses do not regularly review or increase their prices. Eventually however, after a few years, due to increased costs, they get to the point where they have to increase prices and end up introducing a one off large increase. Customers always notice large price increases and are more likely to object.
A better strategy is to increase your prices a little each year, so customers get used to it.
Some business owners might ask “What if our customers go elsewhere as a result of even a small increase in process?” Our response is always “How do you know that will happen unless you try it out?”
The chances are, if you were to some loose customers, they would be those who are most price sensitive and the ones who create the most work, for least profit.
If you are offering a quality product or service that people want, price will not be the only factor that retains your top customers.
Losing a few less profitable customers could even free up your time to concentrate on the service levels you provide to your top customers which will help retain them and could even lead to them buying more of the services you offer.
GreenStones Top Tip: Review your prices and increase them a little each year and don’t be afraid to lose a few customers along the way.
If you would like some help and assistance to increase the price of your products or services, call David Swann on 01733 372681 or email him at: david@greenstones.co.uk