Why do so many people lose at the game of business? The number one reason companies fail is, simply, their costs are low.

How To Raise Prices?!

Unless you are incredibly well capitalized, you shouldn’t try to offer the lowest prices in your marketplace. Bragging that you’re competitive on cost will not gain more customers.

For 25 years we’ve revealed companies, even whole industries, the best way to raise profits by increasing their prices, including those who think, “But our industry is so competitive.” Every industry from insurance to heavy gear to fundraising is competitive.

Trying to match or conquer others on cost is a suicide mission, not a business practice. Increased gross profits are needed by your business service and to enlarge customers. You and cost questions must raise yours.

There is no firm that can not raise prices if more customers understand a few easy hints:

1. Just Increase Price. You don’t need a cause or justification to raise costs, simply do it. Try increasing your prices, even a little, and see whether it stays. If you’re scared to raise the cost, bundle products and services to increase your average sales price.

2. Magic of choices. When you show the price of a service or product, consistently offer services or alternate products to make logical sense of price.

3. Menu pricing. Folks believe what they see more than what they hear. We did this in the automobile industry that is highly competitive. It increased profits $400 per automobile.

Contrary to popular belief, selling your services or products at the lowest cost does not make customers more loyal or more happy. The customers that cause you the most problem generally are the one.

These three strategies work whether you sell a a product or a service, a tangible or intangibles, high-end products that are expensive or entry level trinkets, in all industries.

We really do get what we pay for, so sell value and the entire especial experience connected with what you’ve got to offer. Unafraid to raise price.

 

Entrepreneur.com

Filed under: Tip of the Day

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