pricing

What is the best way to price your goods or services? It depends so much on what you want to achieve. 

The quickest way to increase (or decrease) your profit in the short term is to change your pricing. If you increase your selling prices then the extra revenue all becomes extra profit. Equally when you discount the discount value all gets removed from your profits – that’s because the cost of fulfilling the sale will be the same. You are giving away or earning extra profit when you adjust your prices. 

Depending on your industry you may be able to change prices without your customers noticing at first. This can help you achieve some major short term profit gains. However, you must be very careful as customer price perception can be very difficult to rebuild and it can be very expensive to regain customer trust.