Some Thought Bubbles: - As a small/growing/independent business you can not compete on price - there are always bigger businesses around with better buying power/sales people/customer reach etc and they will always beat you in a price war
- 95% of people do not buy on price despite what they say
- When you put prices up the clients that leave you are normally the 'scum' - the disloyal that buy on price
- When you put prices up, the clients that stay with you are the ones buying on everything but price - they love your service/flexibility/localness/friendliness etc etc
- When prices go up you can afford to lose clients (with a 30%GP and a price increase of 10%... you can lose up to 25% of sales volumes and still get the same gross profit!)
- At my last twenty events I have asked the question "Who has put prices up in the last six months?" - not one person has put prices up has seen a loss in profits as a result!
RELEVANT LINKS
Cutting Prices - bloglink
Barclays ‘Let’s Talk…’ Programme – webpages and online booking for the Let’s Talk… workshops
Putting up prices - bloglink
If you actually want to understand how and why and when to put up prices then give us a call on +44 (0)1225 851044 or contact me at rc@directorscentre.com - this is one of the many things that my team help people to do
3 comments:
Great post Robert.
Great post indeed, and happy to see that there are more tools type articles appearing.
So, with that being said, it's all very well putting prices up etc, but what is your take on the banks tightening credit, and this reportedly putting small businesses at risk of collapse?
What is your advice for those facing such dangers, and what can they do about it?
see
http://www.candocanbe.com/marketing-small-business/promote-less-and-charge-more/
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