Price increase for a long time
In fact, you may be in a situation where you have to decide whether to raise the price of your product. For example, there is a higher demand for your goods, or the cost of raw materials increases.
Some business owners avoid raising prices because they fear that customers will react negatively. In many cases, it is a better strategy to increase prices gradually, as a series of small price increases will have a smaller impact on customers than a single large price increase. To put this in perspective, a single price increase of 10% will have a greater negative impact than two price increases of 5% each.
Reduce prices without changing product distribution
Many customers are always looking for ways to get more out of their business dealings with you. This can put you in a difficult position, especially if your business is in the service industry.
For example, if you accept a previously agreed upon lower price for a product, you may be sending a message that your original price was too high. Any future business may be subject to price negotiation.
To deal with this situation, you can accept a lower price, but have to change the delivery terms a bit.
For example, if you negotiate a price for a three-month equipment installation, you may be able to accept a lower project cost if the number of weekly meetings is reduced, or monthly reports are streamlined. Another option that works well for large orders is a volume discount.
Random Pricing
Some clients will always ask you to explain how your pricing structure is calculated so you can adjust your prices. Furthermore, if you don’t know exactly how your costs relate to your prices, it will be difficult to know when it is time to adjust your prices.
