|
||
Deciding to raise or lower your pricesEvery business struggles with the decision to raise or lower prices. When an item is no longer selling, lowering your prices may be the only way to clear it out of your inventory. Raising prices will happen often as you need to compensate for the increase in prices of your supplies. Small businesses that are in the food industry often have to raise their prices because things like cheese will rise and the only way they can afford to keep buying it is to raise their prices. You may be able to ease some of your customers woes about the price increase by telling them about the increase in vendor prices and a few of them may be okay with paying more for the same product. Now, how can you make the decision to raise or lower your prices? Here are some easy steps for you to follow:
How much do you want to raise or lower your prices? You should only raise prices up enough to provide for the demand of your product and raw goods. Keep the price hike manageable. When you raise your prices too much, you are going to get a lot of backlash and lose a lot of customers. If you are concerned about one large price hike, you can start with a series of smaller hikes each quarter until you eventually reach your ideal price. Small hikes are often unnoticed and most customers will easily adjust to it compared to a large price hike. Give them value Another way to add perceived value to your product is to look at the way you advertise it on the label. If you are advertising it based on the quantity inside, look for a new way to say you get more for what you pay for. For example, what sounds bigger to you, 13 ounces or 1 pound? When you are shopping, you are most likely going to look for the bigger number, even if you really are getting less. |
||
Copyright 2003-2020 by BusinessKnowledgeSource.com - All Rights Reserved
Privacy Policy, Terms of Use |