When Is It a Good Time to Increase Your Price?

Posted: July 4, 2011 by David Lamont in Opinion
Tags: , ,

Very little is written on pricing strategy so this RainToday article by Mark Hunter caught my attention and is worth a read. It’s about how to justify a price increase. He lists 2 justifiable categories: Market factors and Value factors.

Market Factors Listed:

  1. A competitor has gone up in price
  2. You’ve incurred an increase in your costs
  3. Your customers have just taken their prices up
  4. Other key players in the industry are increasing their prices

Value Factor Questions:

  1. Has your customer realized added value during the past year from using your services?
  2. Is your customer going to realize added value from what you provide them in the year to come?
  3. Are there improvements in service or performance you can document that your customer would see value in?
  4. Will you be able to increase your strategic importance to your customer in the year to come?
  5. Can you show your customer how what you provide them will give them a competitive advantage or minimize their risk in the year to come?

Mark Hunter, “The Sales Hunter,” helps individuals and companies identify better prospects, close more sales, and profitably build more long-term customer relationships. Since 1998, Mark has conducted thousands of training programs and keynotes on sales.

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