It's usually around this time of the year when business owners consider a budget for next year (you should!).  For most, a lot of work goes into the Expenses or Costs ('can we save $600 on Stationery this year?').  The real effort must be on growing sales and profit, not tinkering.

One of the fastest and easiest ways to improve revenue and profits is to increase price.  Don't dismiss this, pricing strategy is just as important as sales volume and costs.  Consider these benefits:

1. It can be easier and more effective than trying to win new customers (the cost to win a new customer can be 7x the cost of selling to current customers).

2. It has a far bigger impact on the bottom line than selling more (costs don't rise, so most of the increase goes straight to profit).

3. Price can be a statement about the quality of what you are selling.

4. Raising prices allows you to compete on value, not price.  This could allow you to increase service levels, inclusions, guarantees, and return policies.

5. Expect to lose some customers, but look to replace the ones interested in price only with customers who want the worth offered in total.

6. There are calculations showing how many customers or sales you can afford to lose before you are worse off.  If the gross margin is 60%, and prices increase by 10%, you could lose 9% of your present sales before being worse off.  (Call me for a Discount/Increase Chart).

7. You are running a business where costs and wages are rising, so you need to earn both a fair salary for your time and a return on your investment.

8. A small price increase can substantially improve the cash position, which you can then apply to funding of marketing and led generation strategies, also leading to more revenue and profits.

It only takes a few minutes to model the impact of a small increase.  If you also improve your lead generation, sales conversion rate, customer retention rate, and review costs there can be a huge improvement in your profits and cash.  Guaranteed!  We'd be happy to show you how relatively simple it is.