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Put Prices Up - NOW!

Posted On - 25/09/2015 10:00:00

You Can and Should Raise Prices

You're going to make more money from the next customer you serve. And you're going to do it in the easiest, most direct way. By putting up prices.

In this, the first blog from our 2015 Open Day session "Instant Profit", we tackle why you can and should charge more. And we lay to rest that far from stupid advice from people who don't appreciate your business it's insight grounded in hard fact. Join us as we explore the substance behind worth, price and sales. Because while your gut reaction may be alarm at the prospect, far from destroying your business, raising prices will improve it.

Can you rely on instinct?

During the "Instant Profit" workshops we run at here at our offices, we do an exercise. People are offered two choices for selling Widgets and asked to vote which is best for their business. One is to raise prices 10% but lose 20% sales. The other is to drop prices 10% but increase sales 20%. We get a range of answers to this with some choosing the first and some the second.

Now, we're not about to tell you which is ‘right' – you can watch the video for that. What we will do is ask you this: which is more important for your business: the amount of money you take or the amount of money you make?

Discounting: nothing but a fast way to lose profitPricing and break-even

Discounting: sure, do a deal and make a sale. Undercut the shop up the road: steal their business. Makes sense doesn't it?

It's not that simple. Look at it this way: that discount, that decision to undersell, is at the expense of profit. The costs don't change, how much you make does. And the tighter your margin, the more disproportionately you lose.

But it's not just profit you lose it's how hard you have to work to get it back and break-even. And get this, raising prices will more than compensate for the business you lose because you increased the price. Never!? Watch the video to find out more.

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