Action Step to Rapidly Grow Your Business Profits
Raise your prices!
Now this is going to do a few different things depending on your product or service.
If you offer a product or service that is a commodity and there’s really no difference between Product A and Product B it might be hard just to raise your prices for the sake of raising prices.
However if you have a service or product that is different and has been differentiated and now has more value because of that, this is something you can do.
And if you’re in a service business you should definitely do this. Here’s the thing, when you raise your prices a couple different things happen.
First Benefit of Raising Profits, More Profit
Number one you make your business more profitable right out the gate.
That’s a way to amplify your business.
Second Benefit of Raising Your Prices, Repel Cheapskates
Number two some of the people that are not quite appreciative for the value that you provide, that may be whining and moaning about trying to make things as cheap as possible, maybe they’ll go away.
You know, one time I worked at a restaurant years back and occasionally we did this person who’d complain about everything.
They complain about the service. They complain about their drinks. They complain about the food. They just be a whiner. Right?
And then at the end, they’re like “You know I don’t get this meal for free maybe I just won’t come back”. They’ll try to get a free meal. They’ll say that if they don’t get a free meal they won’t come back. Oh… that would be so bad… wouldn’t that be horrible.
When you raise your prices that will also attract people who are looking for more value.
You know if you put out a pair of jeans on the market and you’ve had the five dollar pair of jeans or the hundred dollar pair of jeans, what sort of audience do you think would attract which pair you’re probably gonna get a more affluent person who has a bit more of a budget and appreciates quality for the higher priced pair of jeans. Right?
So if you’re selling the five dollar pair of jeans you might be able to sell a lot of them but they’re just people looking for the cheapest jeans possible.
And are those really the type of people that you want to serve? Something to consider…
Third Benefit of Raising Prices, Attract the Ideal Customer
And last but not least the other benefit of raising your prices. Think about when you get something like a product or service and you paid a good amount of money for it, don’t you tend to value it just a little bit more?
It may be just another pair of jeans. Right? But if you paid money for them. A little bit more. And you’re paying for higher quality the chances are you’re gonna appreciate those more than if you just paid a very small amount for them.
So think about that, you’re also increasing the value to the person who’s receiving the product or service. Raise your prices. Don’t worry about losing customers. Raise them. They don’t have to be a lot but just raise them a little bit and that is how this economy works.
What Are Your Thoughts About Raising Prices?
Have you raised your prices recently? Are you concerned about loosing customers?