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.
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3 opinions for Recession-proof your boomer business - Raise prices
Ren Garcia
May 10, 2008 at 7:19 am
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”.
Jean
May 11, 2008 at 7:57 pm
Thanks for the comment, Ren. If your costs are going up, you really can’t afford NOT to raise prices.
Sunny Side Up, or “Small Business Boomers as Optimists”
May 16, 2008 at 5:33 pm
[…] 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 […]
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