Raising or reducing your business prices is one of the most fragile thing to do because it can alter a lot of things in your business. Making the right choice can lead to more profit and more customers for you while making the wrong choices can make your business lose both income and customers.
Hi everyone my name is Timileyin and in this post, I will be showing you how and when to raise or reduce your business prices.
The mindset of when to change your prices is as important as how to go about it because knowing the time is also as important as knowing how to do it.
The reason why I said this is because in terms of the ‘how’, two companies with the same product makes a change in their price at the same time will most often than not deliver different result due to the expertise put in the business
In terms of the ‘when’, two companies with the same product with the same level of expertise makes a change in their product and services prices at different times cannot generate the same result. Imagine a good sold for a particular amount in 2010 being sold for that same amount now, it will definitely have an impact on the business either positively or negatively.
The ways to increase your productivity by attending to your business prices are:
DECIDING HOW MUCH TO CHANGE PRICES
Many at times, businesses raises their product prices so high and one thing they generally intend doing is to solve a challenge.
Take an example of a product that is in a very high demand with a relatively moderate price, the business may not have the capacity to shoulder that increase so one thing they do is to raise their prices so high so as to cut down some demands.
Sometimes, increase in prices of product or services are so high on the basis that users will adapt to those high prices with time so as to maintain that moderate level of demand unlike when the price increase is little wherein the customers may not take notice of.
When you have multiple products, it is advisable to only increase the prices of some selected products and be careful while doing so because some customers are fragile to any change in prices especially if it goes up.
CHOOSING THE RIGHT TIME
If you have carried out your research and you discover that you need to either raise or drop your price then you have to do it at the appropriate time. This time chosen as to be suitable in the sense that it should have a high impact on the users if you actually want your impact to be felt.
Many business owners raise prices occasionally especially during festive seasons and they won’t drop it until after the season ends.
UNSTABLE VALUE AND PRICE
As an entrepreneur or business owner, you don’t just place prices on your product like that. You need to place prices on your product based on the cost of production among other things. But value in relation to price can be seen in a 2-D manner, this means that they are independent of each other. At the end it all boils down to the customer and how he handles it.
A typical example of their in-dependency is by looking at a toy store with different kinds of commodity with their known prices, if a seller reduces the amount of some of the commodities there, the buyers will be more attracted to it and if it’s higher the buyers will avoid buying that commodity if all other market conditions are the same