As the year draws to a close distant attention begins to think about 2017.
What can you do to improve your results and increase profitability?
You can spend hours looking through all your costs and expenses. Really you should and probably are doing this all the time. So there is unlikely much profit gold to be found there.
Take a look at your customers:
- are you providing good and consistent product/service?
- do they find your company good to deal with?
- have they been on the same pricing schedule for some time?
Probably the answer is Yes to all 3.
Well if so it is time they paid a little more for your goods or services!
But you say – business is competitive and customers might not appreciate a price increase. Fair enough, but if you are confident of your answers to the points above and your suggested increase is modest, it can be achieved.
Pricing is a sensitive subject. It is natural to be concerned about how an increase may be accepted by your customers.
Profitability is also a sensitive subject. Every dollar of your increase will go straight to profit. Nothing bests pricing to increase your profits!
Price increases work – the customer resistance is never as bad as you think. Be brave and go for it!