All products are price sensitive.
(If you don’t think your product is,
try increasing that price by a million dollars
and see if you lose customers)
So before increasing pricing,
we weigh the margin gained
against the sales lost.
If the net amount is positive,
then it makes financial sense,
at least in the short term,
to increase pricing.
be very, very careful
when increasing pricing during a recession.
Not only are customers more price sensitive
(meaning more sales will be lost)
but the price increase is also more visible.
The media and the consumer advocates
are looking out for ’selfish’ companies.
If you can,
wait for a recovery
to increase prices.
This entry was posted on Friday, February 20th, 2009 at 6:00 am and is filed under Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.