Australian Business Coaching Club Newsletter - How Do You Defend Your Prices


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How Do You Defend Your Prices

When everyone else puts their price up, it is pretty easy to put up yours as well. It might be in response to price increases from industry suppliers, due to exchange rates, inflation or some other external force - but what if you want to put your price up because you just want to make more money?

If you just put your price up without doing anything else, you are most likely to lose sales. Yes there are examples where people have doubled their prices and increased sales, but this is usually in a situation where the business has been grossly underselling their products and were underpriced. Where you are market average, you will lose business.

There are also pricing tactics (or tricks) businesses use to lift their prices, such as shrinking their service, but these price increases don't last long. Customers pretty soon figure out what has happened and react accordingly.

In order to achieve sustainable price increases, a business must defend the increase in their marketing. This can be done in many ways, from re-branding or re-positioning, to improved communications to the marketplace or identifying price insensitive niches.

Long term price increases are achieved by redesigning your marketing. Strategies to Increase Your Prices don't have to be expensive. In fact many have little or no-cost.

 When you combine these strategies with tactics, very significant price increases can be achieved. The beauty of price increases as a business strategy is the revenue increase goes straight to the bottom line, so even just a 20% increase could result in a 200% increase in net profit (if it is currently 10% of turnover), and you make more money by working less.

When you Increase Your Prices, you must have a plan to defend them. How do you defend your price increases?

Find out more in my new book -  Price: How Your Can Charge More Without Losing Sales

Pre-Launch offer finishes July 31st.

Don't be a Price Taker.

All you need to do now is to Empower yourself and take action ...

May Your Business Be - As You Plan It.

Dr Greg Chapman - The Business Brain Surgeon
The Australian Business Coaching Club