Page 8 of 8
How should I go about raising prices?
You may occasionally be faced with the need to raise your prices. Doing so can seem like a dangerous option, but there are steps you can take to offset the pitfalls price-hikes pose.
- Calculate the impact on profits. Estimate the effect on your margins and your sales volume.
- Estimate the current demand. It is preferable to raise prices when demand is high.
- Disguise them. Introduce newer products at a higher price whilst factoring out the old ones, or lower the specifications of your products without lowering the price.
- Explain your reasons to customers. Doing so is crucial to maintaining a good customer relationship. Make sure to re-state the benefits of your product.
- Spend more on marketing. Do this to off-set the negative buzz generated by raising prices.