Pricing your goods or services is where it all begins. You don’t want to price things too high for fear that no one will purchase from you. Too low and customers may see you as “cheap” or you may not attract the types of customers you want to work with. Where is that sweet spot, and how do you know when it’s time for a price increase? Here are 3 signs that it may be time to raise those prices:
You’re so busy that you’re actually turning down business.
Guess what? When demand for certain goods and services increase, so do prices! If you’re business is growing, and you’re busier than you want to be, a price increase can help weed out those clients that take up too much of your time. Higher prices can also attract better, higher quality clients.
It’s been a while since your last price increase.
At a minimum, you should be raising your prices yearly to keep up with inflation. If it’s been a minute since you’ve reviewed your prices, it’s probably time – just look at gas prices!
Your prices are lower than your competition
I get it. You want your prices to be competitive with your industry. However, if your prices are significantly lower than some of your competitors, it may look like you’re the “budget” option, or you don’t offer as much value as others. People truly believe that you get what you pay for, and if you’re at the bottom of your industry price-wise you may need re-evaluate your strategy. It’s not just about the goods you offer, or how much time you spend on a certain project. What value do you provide to your clients or customers? Aside from price, there are many other things that can set you apart from your competition.
