OnDemand WTP Pricing Research

Be Bold -It’s Time For Price Increases | Strategic Pricing

We are seeing more and more evidence that prices are increasing in a number of markets, so if you are refining your pricing strategies and plans for 2015, be bold.  Don’t wait until everyone else has raised their prices.  Be confident and take the lead in raising your prices.  Most markets appear ready for it.

There was an article in the USA Today last week, Pay up! The companies charging you more. The article cited companies like Chipotle, Philip Morris International and Allergan among several others which are all raising their prices.  One of the important points in the article was the strong positive reaction from investors to companies who had raised prices.  Of course the investor reaction should not surprise anyone.  We have written in the past about the profit improvement power of 1%.  A 1% increase in prices typically increases Operating Income by 10% to 20%, whereas a cost reduction typically improves Operating Income by 2% – 7%, depending on the industry.  Price is more impactful.

Read complete blog here:

Be Bold -It’s Time For Price Increases.