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Council Post: Nine Signs It’s Time To Raise Your Prices | Forbes

A major part of running a successful business is knowing at what price to value your services or products. Entrepreneurs and business owners must ensure a balance in price between costs and gains. While low prices are certainly an attractive selling point, a variety of factors can bring pressure to bear on your bottom line, necessitating a higher charge for your services.

The good—or negative—results of any price fluctuation can depend on how the situation is handled. As such, it is crucial that businesses looking to raise prices know how to spot the signs that indicate a change is needed and will be accepted by customers. Below, nine members of Young Entrepreneur Council each share one clear sign that it’s time to raise prices.

1. You Have To Adjust To Vendor Prices

When you’ve already created a lean budget and pared down expenses but you still see your profitability waning, it’s time to raise prices. That’s because at a certain point vendors that supply you with materials or other equipment have raised their prices, which is impacting your own margin. – Serenity Gibbons, NAACP

2. Your Delivered Value Is Higher Than Your Price

When it comes to pricing, keep in mind the value you are delivering. If your product or service saves customers time and money, don’t give it an undercut yourself. Set a price that accounts for the value you are delivering, without overshooting and forcing customers to build their own version of your product. When you add more value to your offering, reflect that with a price bump. Raising prices most often causes a small amount of churn and a reduction in new customers, so keep a close eye on it to make sure you haven’t raised your prices too high. – Stephanie Wells, Formidable Forms

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Council Post: Nine Signs It’s Time To Raise Your Prices.

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