January 1, 2011

Do your Prices Reflect on the Increasing Costs of your Products or Services for 2011?

Today’s topic is about whether you as a business owner; should be considering an increase on your prices of products and services for 2011.

For example: for some time now we’ve been offering affordable canvas art at a price, which we personally feel to be the right price to both accommodate affordability and to encourage sales.

However I can tell you that 60% of our art collectors think otherwise, and often we are told that we could do with increasing our prices to reflect on the quality of our artwork. We are of course humbled by this kind of criticism, however we've always believed in offering original art at a price that people would want to pay, art to suit their budgets.

So I beg to ask you the question; Do your prices reflect on the increasing costs of your products or services? If so then consider this, if you’ve always stood your ground in believing that good old fashion prices work, but truly believe that you can no longer continue to make minuscule financial growth then here’s my suggestion; review and increase your prices accordingly.

Don’t feel obligated because you think your consumer market will hate you for it; at the end of the day it is the survival and primarily the growth of your business that is far more important in this current economic climate, and although your consumer is the voice of your success, you make the final calls in your business.

Take into consideration the rising costs of fuel, and for example if you use a courier service in your business then you will no doubt have noticed the increase of their service costs in general. Think about all the other small business expense increases you have occurred over the last 12 months or so, they all add up; can you honestly continue to absorb these increases in your current consumer prices?

For almost 5 years we have not ever once charged for shipping and handling as we have always absorbed these costs in the price of our products, and of course we would love to continue to do this in our art business for many more years to come; But after careful consideration even we have decided to increase prices across the board by a mere 8% for all artwork on our website, so in theory this would cover the increasing costs of shipping and handling.

So I ask you before leaping into the New Year with your business, to take a look at your current prices and see if you could do with a few adjustments here and there, find areas in which you could make small increases without having to make big changes in which your business works. Good luck.

Image credit: renjith krishnan / FreeDigitalPhotos.net

About Samantha Wright

Samantha Wright is an exclusive guest writer for Magnet4Marketing. She was awarded 2007 MasterCard Business Woman of the Year and loves to share her insight into the world of online business marketing. Samantha is also a keen surf photographer and on the weekends can be found at her local beach break photographing surfers of all abilities. You can follow Samantha on Facebook.

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