free small business advice & information
Main Menu
Hot Links
Page 10 of 13
Pricing Your Product or Service
9. Aim High
9.1 It is easier to reduce prices than raise them.
- If in doubt, try higher prices first.
- Be prepared to lower prices if the required sales volume is not achieved and your cashflow is under pressure.
9.2 Low prices often go hand-in-hand with poor quality and service. Is this the image you want to create?
- Some companies can win more customers (as well as boosting their margins) by putting their prices up.
9.3 For a start-up, competing on price is often a mistake. Low pricing is more often a strategy of big companies that cannot compete on service.
- What you will be able to offer is a string of benefits such as convenience, speedy delivery and specialist skills.
- Many small firms underprice in order to 'build up sales'. Aim to build up profits instead - the buying decision is rarely made purely on price.
Labels: Increase Sales
Monthly Prize Draw!
Win £375 worth of advertising for your business.
Enter our competition by either:
- Signing up to the is4profit Small Business Newsletter or
- Entering your firm's details into the Small Business Directory