You\ncan’t keep prices the same indefinitely, but raising them is always a gamble.\nConsumers can — and do — compare prices anywhere, anytime, on everything.<\/p>\n\n\n\n
If\nyour bottom line needs a boost, raising prices can definitely help — as long\nas you map out a strategy and avoid some common pitfalls.<\/p>\n\n\n\n
Promote, Promote, Promote<\/strong><\/p>\n\n\n\n When\nyou’re ready to roll out the increase, plan to roll out some promotions and\ncoupons at the same time to take the sting out of higher prices. The discounts\nwill help keep your most cost-conscious consumers in the fold. Making discounts\nand coupons readily available establishes the perception that all your prices\nare reasonable, which may or may not be true.<\/p>\n\n\n\n If\nyou’re concerned about promotions hurting your bottom line, don’t be. Not all of\nyour customers will clip coupons or shop sales. Ideally, you’ll sell enough\nitems at the higher price to raise the average sale. If that’s not happening,\nyou can always give prices another nudge, although it’s better to go with one\nlarge increase than several small ones.<\/p>\n\n\n\n Cut Carefully<\/strong><\/p>\n\n\n\n Another\nway to improve your financial picture is to cut costs. One common tactic is to\nkeep the price the same but shrink the amount of product (e.g., a skinnier box\nof cereal or slimmer container of juice). But this can backfire. If customers\ndiscover the change and feel cheated, you could become the target of a social\nmedia campaign, which could turn out badly. You could end up with less business\nand a ruined reputation.<\/p>\n\n\n\n Get Creative<\/strong><\/p>\n\n\n\n Thinking\noutside the box (rather than shrinking it) might provide some opportunities to\nincrease revenue. For instance, you might be able to unbundle a popular\nproduct. You can actually lower the price of the basic item, then add\nadditional charges for each bell and whistle.<\/p>\n\n\n\n Add Value<\/strong><\/p>\n\n\n\n Big box stores and online shopping may help customers find lower prices, but there’s one thing they can’t do. They can’t give their customers the kind of service you can. That’s a value only small businesses can offer. If you do it right, it can help you weather a price increase.<\/p>\n\n\n\n \n\nThere is an art to raising your prices, especially if you are already higher than some competition. It is so much easier to raise your price if you offer such a great level of service that your customers would not think of leaving, even if the increase hurts a little. You can’t really take a price increase until you have fixed anything else that might be affecting profitability. If your product or service needs improvement, then improve before you increase price. You want people to say something like….”yeah, I thought that would happen because they do have a killer product\/service\/experience”\n\n<\/p>\n\n\n\n Call\nus today for more tips on how to ensure you’re following business best\npractices, and let us help you keep your company in the black.<\/p>\n","protected":false},"excerpt":{"rendered":" Raising prices for profitability…offer the best first.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,7,71],"tags":[90,92,91],"yoast_head":"\n