Why Price Increment Isn’t Always the Best Move

[Nomad]

A lot of businesses start with low profit margins and keep the price of the product low, however, once they start receiving a lot of sales, they try to boost revenue by increasing prices. While this strategy sounds logical, higher prices can drive price sensitive customers away. Instead, improve your supply chain or buy directly from manufacturers, or cut your manufacturing and marketing budget to lower your costs. Through this modality, you can maintain a competitive price and still make healthy profits.