Raising Prices – The Idea is Catching On
November 17, 2008 by Jean Murray
My recent post about raising prices got mentioned in the New York Times! And others have picked up the thought; IdentityKitchen (a design firm) also mentioned the NYT article and SBB.
Why does raising prices help “recession-proof” your business? Three reasons:
1. Since most businesses tend to under-price, it gets you closer to a realistic price for your work or for your products. For products, it gives you a bigger margin (you get to keep more of the price of the product). For services, it gives you a better hourly rate for your time. And as I always say, “time is money.”
2. If your sales are down, you are still ok because you are making enough on each sale. You can sell fewer and still have enough money to pay your bills. And that’s the point of recession-proofing.
3. And you can still do “specials” (as KitchenIdentity suggested), and do some discounting (just a little; don’t go crazy) to people who might be good sources of referrals or additional business later.
Raising prices brings you clos