Asked by:CarlL
Honestly, you may be worrying too much about this. A common problem that small business owners have is that they underestimate their own product and its worth. A reasonable price increase is unlikely to drive away most of your key customers and might even draw more as they feel that higher prices equate to a better product. Keep in mind also that if you have, for example, a 10% profit margin, a 1% price hike means 10% more profit. A little bit can provide you with what you need to continue providing the service your customers have gotten used to. Also, consider offering discounts while raising prices, such as a referral discount, that will also have the benefit of increasing your customer base.
5th April 2009 - 08:52
Honestly, you may be worrying too much about this. A common problem that small business owners have is that they underestimate their own product and its worth. A reasonable price increase is unlikely to drive away most of your key customers and might even draw more as they feel that higher prices equate to a better product. Keep in mind also that if you have, for example, a 10% profit margin, a 1% price hike means 10% more profit. A little bit can provide you with what you need to continue providing the service your customers have gotten used to. Also, consider offering discounts while raising prices, such as a referral discount, that will also have the benefit of increasing your customer base.
Answered by: admin