Your Prices Are Too Low!

Are you leaving money on the table?  Ultimately, you want to charge as high a price as your most price-sensitive customers will pay.  So if everyone can easily afford to buy your product, doesn’t it make sense that your prices are too low?

If the last time you raised prices was during the Bush administration – especially the first one – it’s time to do it again.  You should raise prices each time your supplier does, and every time your market or product improves. In this article I’ll discuss why you’re probably charging too little and show you how to correct that.

Your most price-sensitive customers should feel the pinch of your rates.  If you never meet price resistance, it follows that you could raise your prices and boost your income.

If it’s your job to set prices, I understand you don’t want to deal with customers endlessly grumbling over increases.  But there’s an equilibrium between too high and too low, and marketing leadership recommends where that point lies.  Learn to justify your value.

In the next article I show you how to increase prices painlessly using a technique my consulting firm nicknamed the Grandfather Technique.  Using this technique you’ll earn maximum profit without irritating or losing customers.  Until then,

profitable business All!

If you like the blog, please comment.  I’m interested in the issues affecting YOUR company.  Let me know what business areas you’d like me to cover.  If you have specific questions or problems, I’ll answer as quickly as I can.  Also, please share with others using the links below.  Thanks for your readership!

3 thoughts on “Your Prices Are Too Low!

  1. Anonymous

    Yeah a lot of people try their best to lower prices but sometimes the customer actually would pay more.

    Reply
  2. BizDoc Post author

    Scott,

    Thanks for your readership and your question. I intend to address staffing levels at a future point. The measurement to determine when to add staff is one of capacity and I'll show how each person can derive the equation unique to their business in later posts.

    My approach to staffing is unconventional and, frankly, somewhat irreverent. I concentrate on building the bottom line by eking out every scintilla of profit from your current transactions and adding new customers. The goal is to accumulate a war chest with which you can add staff and equipment as needed.

    Thanks for your support. Please feel free to share this with anyone who might benefit. Stay tuned!

    Reply
  3. Scott Isaacson

    I've just read through all of your posts and want to thank you for the excellent re-focusing wisdom that's in each one.

    A topic that's of interest to me is staffing levels. What metrics should we use to determine when we need to hire additional help or to determine if we are overstaffed?

    Again, thanks for your excellent blog.

    Reply

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