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Article Index
Pricing
The Market
Your Offering
Pricing Strategy
Your Costs
Tactics
Checking Your Prices
Increasing Prices

Pricing

7. Increasing Prices

7.1 Analyse the impact on profits of any proposed price change before you make it.

  • Give customers advance warning if they need to budget for your price increase.
  • What will the effect on sales volumes be?
  • What will the effect on margins be?

7.2 Explain to your customers why you are increasing prices.

  • Use the price change as an opportunity to re-emphasise the benefits you offer.
  • A good explanation can strengthen your customer relationship.

7.3 You can try to hide price increases. For example:

  • By gradually introducing new, higher priced products and making old products obsolete.
  • By lowering the specification (and your costs), while maintaining the same price.
  • By improving the specification and raising the price. It is wise to increase the price by more than the cost of the improvement.

7.4 A good relationship with customers can help to improve their perception of the value of your product and the risk of trying alternatives.

  • Spending more on marketing and customer care may allow you to increase margins and turnover.

7.5 Increase prices when demand is high.

The price of paint will increase as we move towards spring and people start to think about redecorating.

BHP Infosolutions

Labels: Increase Sales

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