Business Finances

3 Easy Steps to Raise Your Prices in a Down Economy

Man trying to stretch the dollarOne of the 5 areas that we focus on to help our clients increase their profits and cash flow is average dollar sale.  One way to do that is to raise your prices.  In fact it is usually one of the first strategies we recommend.

Most of us are afraid to increase our price because we see our competitors keep dropping their prices just to get the sale.  That’s because all they know how to do is sell on price and not value.  With that said the business advice that I give my clients is to raise their prices.

I’m serious, even in this tough economy you can raise your prices if you know how and when.  Raising your prices in your slowest season might be tough but it’s a must during your busiest season.

Here are three easy steps to raise your price with no complaints.

  1. Get a list of all your products and services that you sell and rank them on the amount sold for the same time last year.
  2. Take out the most price sensitive items.
  3. Now raise your price on the top 10% of items that are left

It’s really that simple.  One of my clients that have implemented this simple strategy has reported one of his best months ever because he was able to increase his average dollar sale with no resistance from his customers.

Please let me know your thoughts in the comments section below…

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