Surely now is not the time - is it?
Well it might be, but of course pricing is an art not a science, but here are some simple questions;
• Apart from fuel and transport how many of your suppliers have imposed a price increase in the last 6 months?
• How many of these have you absorbed?
• How much difference is the higher cost of fuel making to your business?
Fuel prices are likely to be significant one way or another, but they affect everybody, so why should you suffer?
You may be lucky and not have suppliers who have increased prices but we tend to be very nervous about increasing our prices because we are worried that our customers will vote with their feet en mass. Well you should have more confidence because I bet you do a good job and your customers come back because they like what you do!
If people always want the cheapest why do car manufacturers offer variants of the same model car because they would never sell the SRI, GTX or whatever!
Now I do not know the economics of your business but if your profit after all costs is 5% of turnover then a 1% price increase would increase your bottom line by 20%.
Of course there may be some price sensitive products in your range, and you may not be happy raising those prices. But I bet there are just as many that you could easily add 10% to.
Why not increase your prices by 2% across the board from the 1st of March - if you are still nervous give me a call and we can have a chat about how best to do it in your business
Perhaps the question should be;
Why haven't I increased prices? Who are we?
Tutsan have real world, experience running their own businesses.
Practical, realistic and cost effective.
We are independent and work for you!
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What can we do for you?
If you are running a small business in South Wales and would like more customers & increased profits then call us for a no obligation chat.
Sales, Bookkeeping, Marketing, Finance, Credit control, IT, HR, Operations etc.
None of us can be be good at all of the skills required to run a business and even we were, we would still only have 24 hours a day!
How much would an extra 15% + be worth to you?