Pricing Your Product or Service

11. Trading Up

11.1 Work out realistically how your customers would react to higher prices.

• Would you lose volume - or customers?
• Discuss it with customers beforehand.

11.2 Sell yourself.

• Make sure customers know why they are buying from you rather than a competitor.

11.3 Explain the reasons behind your prices.

• Remember to attribute part of your price to the cost of providing high-quality back-up and after-sales service.

11.4 Unreasonably high prices can destroy goodwill, especially if the customer has no immediate alternative supplier.