Quickest Route to a Pay Raise
Want to know the fastest way to get a boost in revenue, profit and, if you own the business, income?
Raise your prices by about 25% starting today. In my experience most small business owners get caught up in price competition or in undervaluing the service they provide leading to undercharging both what the market will pay and what the products and services are worth.
Look, competing on price is a tough strategy, there will always be someone willing to go out of business faster than you.
When you raise your prices across the board you may find that some of your customers balk and even leave. Generally, as long as you give a solid reason why you are increasing your prices, the ones that leave are the ones that came to you based on price anyway. So do the math on this. Increase your prices by 25%, lose 10% of your customers. The magic formula of “do more with fewer customers” just tilted your way – and you increased the bottom line over night.
Now, get out there and start competing by telling the world how your process is unique, how you specialize in solving a very specific need, or how you package and service your product like no one ever considered. And, start reinforcing the value you bring to client relationships in every communication.
Do this, and you will be ready to bump those prices again. When you are the value leader people expect to pay a premium.