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.

 

[Fidelia]

There are many ways to increase revenue. You can work on increasing your turnover for your business rather than increase price to increase revenue.

 

[Augusta]

Pricing Plateaus Exist. Not every price cut nudges sales upward. So you need to be careful when setting the price for your products

 

[eLdavis]

This actually makes a lot of sense, but what about in situations where you are offering a service, and along the line you picked up some courses to improve the quality of your service, should one still retain their old price?
Or the cost of the tools needed to carry out that service has gone up, won't increasing the price be the best option here? @Nomad

 

[Min George]

Customers always perceive the business as being arrogant when they increase prices because they are more popular.

 

[Nomad]

This actually makes a lot of sense, but what about in situations where you are offering a service, and along the line you picked up some courses to improve the quality of your service, should one still retain their old price?
Or the cost of the tools needed to carry out that service has gone up, won't increasing the price be the best option here? @Nomad

Depends on your sales. If sales are frequent, and you are making good income, you can increase your selling price. Your loyal customers will continue to buy. However, when sales aren't coming, and in the mean time you increase your cost, it will become detrimental

 

[Fidelia]

You must really be sensitive when increasing the price of your goods maybe due to the scarcity of the products, at the time, be sure to reduce the price once the product is in abundance. Your competitors are always available to take your customers by offering them juicy prices.