Why Raising Prices Is the Best Solution

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As a business owner, you need to raise your prices whether you like it or not. If your business model and costs require a change, then you cannot ignore it. Otherwise, you risk becoming another statistic of premature failure.

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It might seem strange to raise your prices, especially since customers always look for the best deal, but increasing the rates can help your business rather than hurt it. If you offer a quality product or service, then customers don’t expect to pay the same price forever. Always have a good reason for raising your prices and feel confident in communicating that to the customer.

Raise prices gradually

Gradual price increases are better than large ones. It’s crucial to test your pricing model regularly, so you only have to make small increases each year which is easier for customers to accept. If you wait too long to change your retail price, then you’re stuck raising it way too much which may trigger a lot more resistance. Or you’ll feel obligated to shortchange yourself for fear of losing customers.

Remain competitive and trustworthy

Raise prices to stay competitive. If you find that your rates are significantly lower, you may need to increase them to be more comparable to the competition. Even though customers like to save money, if your prices are a lot lower than everyone else, they may think you’re inexperienced or offering an inferior quality product/service. Both assumptions can prevent you from adding new customers.

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DISCLAIMER: Please consult with your accountant, attorney and financial advisor before implementing any information displayed on this website. DIY research does not replace the advice of a licensed professional who has thoroughly reviewed your file.