+1 613 - 592 - 0544

+1 877 - 888 - 0598

Andrew Penny, November 12 2019

The best kept secret for increasing revenue

If you want to increase your revenue, increase your prices. Stunninglyobvious but so few do it.

We often don’t raise our prices because we believe we are already at the limit of our pricing ...

... and perhaps it was a few years ago when your service level was lower, when your product quality wasn’t as good, when your competition was different, or when you listened to your sales people who said the price was too high ...

Some years ago a client asked me about pricing of custom services. My simple recommendation to him was to develop a price the way he usually did, and then add 20%. He did – he didn’t lose any business. He just made more money.

I have seen this time and time again where price increases roll through without a question.

And do the math, if a typical company raises its prices by 1%, the bottom line increases by 6%.

So – it's simple – increase your prices. You’ll make more money. You’ll lose clients who only stay with you for price. You’’ll attract a new set of great customers who value your company for what you provide.

Written by

Andrew Penny

Tags

Previous Bring ‘em Back From the Dead
Next Diverse Thinking - Your Team's Secret Weapon