photo credit: geishaboy500
There is lots of speculation lately in businesses regarding correct pricing. Since the economy seems to be slowing getting better and more and more of your loyal customers are returning closer and closer to their older shopping habits, many of us are wondering if it’s time to re-consider our pricing structures. Below are some really great helpful tips that were talked about on Businessweek.com.
One of the best ways to tell if it is time to increase your prices is obviously by taking a look at what your customers are purchasing and how much are they purchasing. If your products seem to be selling in mass quantities then there is probably a good chance that you will still do very well if you increase your prices.
Pricing is about the value that the product offers relative to the next best alternative. If potential customers are using a rival’s product, you need to justify why they should use yours. “Sure we offer fewer attributes, but we’re cheaper.” Or, “Gee, for only 15 percent more, you get all these attributes.” When consumers buy a product, they’re in essence saying, “I looked around at all of your alternatives, and you offered me the best value.”