This is a friendly reminder that your pricing structure should be revisited regularly. Too many businesses let prices remain unchanged without review. Keep in mind that your costs are increasing and at some point those increases need to be covered. Modest price increases are not very often an issue with customers as long as they are not too frequent or too large. And in some industries or markets, competitive pressures might be forcing prices down somewhat. Be careful not to panic and make drastic price cuts unless absolutely warranted. Usually modest reductions to meet a deteriorating price environment are called for. Look for true competitive advantages your firm might enjoy. If you believe that demand for your products or services will not be negatively affected by leaving them where they are or even by increasing them, don't feel compelled to reduce prices. Obviously you will need to understand your market and competition very well before making pricing decisions. One thing to keep in mind is the fact that your initial pricing strategy might have been incorrect. If so, price adjustments up or down will be in order.
Good Luck & Good Selling
Russ
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1 comment:
Fascinating
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