Raising your prices is the fastest way to get more profits in your business. When it comes to raising our prices, fear sets in. Before you say, ?I can't do this?, look at the three things that can happen when you raise your prices.
One, you experience no loss or gain in customers. Because you are now charging higher prices, you make more money for the same amount of work.
Two, you experience an actual gain in customers. Customers perceive the value of your product based on the price you charge. Lower prices attract a less desirable clientele for your services - price shoppers. A premium rate attracts clients who value good work and don't mind paying for it.
The story is told about the jewelry store owner who left instructions with his clerk to reduce prices by 25% so they could sell the merchandise. The clerk misread the instructions and added 25% to the prices. Every item sold. The customers perceived the jewelry to be a higher value.
Third, you raise your prices and you lose customers?your biggest fear. Studies show in most industries, with a ten percent increase in prices, you would have to lose 40% of your customers before you suffer an actual loss in profits.
You need to do your own numbers, but it's highly unlikely you would lose lots of customers with a 10% increase. If your 10% increase brings with it a 10% decrease in customers, you are still way ahead in profits.
