Recession-proof your boomer business – Raise prices
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.
10 Comments
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.
[...] there you are. Ignore the talk of recession. Push ahead. Raise your prices if you need to cover cost increases. Hire new employees, like the 44 percent of the businesses [...]
[...] there you’re. Ignore the speak of recession. Push ahead. Raise your prices if you need to cover cost increases. Hire new employees, like the 44 percent of the businesses [...]
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.
[...] customer spending might go down, and your margins might’ve been tight for a long time, and it’s simply the right time to raise prices, even if your costs haven’t gone up in the last six [...]
[...] the other hand, she writes, despite the talk that deflation — a period of declining prices — may occur sometime in the [...]
[...] recent post about raising prices got mentioned in the New York Times! And others have picked up the thought; IdentityKitchen (a [...]
[...] recent post about raising prices got mentioned in the New York Times! And others have picked up the thought; IdentityKitchen (a [...]
[...] how to weather a recession by providing value, raising prices, and finding the right kind of business to [...]