Should I increase the price of my products because demand has increased very highly for my business?

[Kross]

Every business is all about making profits and maximizing same. If my business is so credible that customers trust my brand so much and the demand for my products increases, would it be wrong if I increase the prices of my products above slightly above what others are selling to make profits?

 

[eLdavis]

Though it's your business and you can decide to increase the price whenever, but i feel if you were having enough profit with the old price no need increasing it simply because you have a lot of demand, unless in situation where the cost of production has increased.

 

[Min George]

The original poster didn't mention that cost of production increased. He just wants to increase cost of production to feel premium.

 

[Augusta]

Some people do this and it actually works for them. So I font think it is a bad idea to test the waters it can be helpful

 

[Miley]

Now because of the increase in transportation every goods has increase and every individual supposed to be aware when I add some increased to my product.

 

[Springtime]

Depends on how you look at it. If there is a high demand for your product, you may consider raising your price a bit to increase profit. But there is a risk that the price increase may discourage customers to buy and look for alternatives.

 

[Suba]

Before you raise the price of a product that has high demand, you should first do competitor research and consider customer experience. Generally, if the price goes up without reason, customers will leave.

 

[Kross]

If you want to raise the prices of your products like that, just be sure that your products are absolutely premium quality.

 

[King Belieal]

You would just lose goodwill with irrational increase in the prices of products. People might revolt against your business.

 

[arunima25]

If the cost of production has increased, it makes sense to increase the price of the products and it is fully justified. But if you are increasing it just for the sake of making profit, it might backfire. Increasing a nominal as per the inflation might be taken well by the consumers. It might backfire too. Maybe the affordable cost of your product is getting you more consumers.
So, you have to weigh in all factors and then take a decision.

 

[Augusta]

You still have to apply caution though if you want to make high sales and till maintain your customers

 

[Fidelia]

You don't just increase the prices of products like that. If you want to, you must clearly have a justification to explain to the customers.

 

[arunima25]

There is one rule that is followed in businesses depending on the kind of business and the persisting situation. More demands meaning more business and it would mean a low price. An affordable price is what attracts a lot of demands too. So, analyze your situation thoroughly before you take any decision around price hike. An unjustified reason behind price hike might bring down the demand and impact the business in negative ways.

 

[Augusta]

You might not know what might be bringing the growth can be the price reduction when you increase they might just move away