Don’t be afraid of increasing your prices

Increase your prices and profits

Talking to one of my clients today he said that he had spent the weekend in the office two weeks ago sorting out some pricing stuff.  I was about to reprimand him for working the weekend when he explained that he had been putting all his prices up by 7%.  This is something that I had suggested to him some time back but he was worried that he would lose customers or that they would complain.

When I asked him what the result was he said “no-one noticed!”  “Well, that’s not quite true”, he went on to say, “two people made small comments but still bought and everyone else just accepted it.  We’ve still got to announce the price rise to a few of our big key customers but I now have the confidence to be able to say to them that everyone else has accepted the changes”.

A few minutes later in the conversation my client went on to say that this looked like being the best month of sales ever, that profit margins had never been better and that it looked like annual turnover for the year was going to break £1million for the first time.

Not bad in today’s market, especially when you take into account that he’s in manufacturing in the UK – a sector that’s supposedly taking the brunt of the recession.

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