Recession-proof your boomer business – Raise prices
May 10, 2008 by Jean Murray
There are two schools of thought on this one:
1. It’s a recession. No one is buying. So in order to get new customers and keep my current customers happy, you lower your prices.
2. We are also seeing inflation. Increased gasoline prices have affected your business significantly. So you have every right to pass along these increases to your customers.
I vote for #2. People expect you to raise prices. I’ll bet you haven’t done it in a while. People won’t holler as much now; they understand about gasoline prices and their affect on small businesses. You won’t lose any customers, and if people see the value in your product or service, they will keep buying.
Let us know what you think. Vote on the current poll.
I vote #2.
If you lower your prices when your cost of goods & operating expenses are rising, you can be in danger of “the more you sell, the more you lose”.
Thanks for the comment, Ren. If your costs are going up, you really can’t afford NOT to raise prices.
I vote for # 2. No one can afford to “…buy into..” the recession theory and give the farm away as a result. The merchandise or push should be “value” any way.