04 Dec The next simple way to increase your profit is to increase your prices
A few weeks ago I started sharing my simple tips for you to increase profit in your business, as I was getting fed up of all the negative messages in the media about the cost of living crisis.
Rather than feeling like you have to cut back on your standard of living, or simply to stay warm and have your heating on, I wanted to flip things around and look at how you can increase your income by making more profit in your business.
When most business owners think of increasing their profit, they jump straight to getting more customers and, though is also a great strategy to increase your profit, it can take time.
So, while you’re putting in the marketing to get leads for new business next year, you can do these four simple tips to increase your profit right now.
Before I give you tip four, let me remind you of the previous three:
- Manage your outgoings – go through your business bank statements and cancel anything you are not using
- Negotiate with / change your suppliers – see where you can get the same service or product at a lower price
- Manage your debtors – follow up outstanding debts and review your payment terms
And now number four, which is something I discuss a lot with business owners, is Increase Your Prices.
When was the last time you increased your prices?
Lots of small business owners avoid doing this as often as they should, mainly because of fear.
Fear that customers will stop working with them and new customers will think them too expensive.
Pricing is a big topic that can bring up lots of emotion but ultimately, you must price your services or product to be profitable, and for you to earn the income you desire from your business.
There is always a spectrum of pricing, from bargain basement to high-end, and there is a market for all of this.
So, you have to decide where you want to sit on this spectrum and if this gives you the income you desire.
There is lots to consider but, if you have been thinking about increasing your prices then I’m pretty sure you should go ahead.
Still not sure whether to do it or what to increase your prices to?
Book in a complimentary strategy session with me and I can help you answer these questions.
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