Price Increase Decision Checklist
Regardless of what is going on in your local market or the overall economy, it can be hard to choose when to raise prices on your business’s products or services. You value your customers, but you also need to make a profit! Go down this list and take these factors into consideration when deciding on a price hike.
…if your business expenses went up and by how much
…whether your vendors have raised their prices
…if your personnel costs have gone up
…if your insurance or other costs have risen
…when was the last time you raised prices?
…if you recently added value to your product or service
…how will you notify customers of price increases?
…have you cut expenses as much as reasonable?
…might you want to temporarily decrease your own pay?
…how loyal are your customers? Retention rate?
…are you steadily acquiring new customers?
…have your competitors raised prices?
…if you dominate the market
…have you done the market research?
…have you analyzed sales?
…do you have a plan to adjust marketing strategies?
…do you have plans to improve customer service?
…are you prepared to measure your results?