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Pricing for Profit

Pricing for Profit
If someone offered you a sure-fire way to double your profits, you'd jump at the chance. And if you knew that a 10-percent price increase would double your profit margin, you'd undoubtedly go for it. Doubling its margins is exactly what would happen if the typical U.S. business raised its prices 10 percent. Right pricing can dramatically improve profit margins for minimal cost.

Is it time for a price increase?

  • When was the last time you raised prices? Have you been focusing on cost and ignoring the other side of the profit equation?
  • Why do customers buy from you? Because of price? Or is low price an excuse for not offering something of value?
  • How do your product's (or service's) benefits compare with the competition's? If you're offering more, you should be charging more, not less!
Companies may be timid about raising prices for fear customers will look elsewhere. But if the new price is in line with buyers? perceptions of product or service value, such fears are unwarranted. Some customers may jump ship? but the ensuing revenue loss is generally outweighed by additional revenues from the price increase.

Considering a price increase? Use our Pricing for Profit Calculator to find out how much more profit would drop to the bottom line. You may be pleasantly surprised.

Considering a price cut? Use our Pricing for Profit Calculator to find out how many additional sales you would need to maintain your current level of profitability. You may be shocked by the results.

To use our the Pricing for Profit calculator click here or on "Start Survey" in the Survey Status Box.


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