Supply and Demand
Economics 101 tells us that for any given level of supply, as demand increases you can increase your prices, but do you do it? Have you seen people queue to get the latest iphone, or tickets for a popular group. There is no need to discount when there is already a queue at your door.
If your demand increases, it is an opportunity to increase your prices at little risk to your business. After all, the increased demand for your products and services would not be occurring if your customers did not value your services more highly than your competitors’. Yes you will be likely to lose some buyers who are the most price sensitive, but these are being replaced through your higher demand.
Over time this results in an upgrade of your client quality. A good business will be ‘sacking’ the bottom 10% of its customers every year through price increases.
This tactic depends on ensuring that your demand does increase each year. This relies on good marketing so that you continue to attract the right kind of clients. Your marketing would be focussed around your Best Buyers.
When you have a regular flow of business from new and existing Best Buyer customers, you will have no fear of increasing your prices. So if you find yourself so busy that you can barely get the orders out the door, it is time to lift your prices and become reassuringly expensive.
Learn about more Pricing Strategy tips at www.IncreaseYourPrices.com.au.
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 Profit Whisperer
Learn more about how these marketing strategies would work in your business when you request a Free Preview copy of the best selling Small Business book; The Five Pillars of Guaranteed Business Success
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