Should we raise prices?

Just think for a minute about a hundred of the most useful or favourite things you buy on a regular basis, how many would you stop buying if the price went up by one percent?

For example, would you stop drinking your favourite pint of beer if the price went up by 2 pence from £1.80 to £1.82? Or your favourite bottle of wine if it went up from £5 to £5.05?  Or would you stop reading your favourite Sunday paper if it went up from £1 to £1.01?

If your answer was “No”, then what you are saying is that, as a customer, if the product is good, a really small price increase won’t stop you buying it.

If your products and services are good, then following your own logic means you could increase your prices by an average of 1% without losing almost any customers, couldn’t you?

Of course, that’s just a very small 1% price rise.  When you work with us, we will help you implement strategies and techniques for increasing your prices in a way that means your customers will happily pay you more money.

But a word of caution…

You could, of course, simply put your prices up straight away.  And that may be a great thing to do.  But it may also be a knee jerk reaction.  It could result in you losing many more customers than you expect and harm your business.  While it is likely that putting up your prices would be a great strategy, you need to think about it alongside some other strategies- increasing perceived value and benefits and reducing the consumer’s sense of risk when buying from you.  This will help make sure that your customers are happy to pay your higher prices.

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