I remember hearing a story about a tattoo artist who was charging $50 an hour for his services. When a Business Coach told him he should double his price, raise it to $100 an hour, his reply was “I will lose half my customers”
The coach explained that the industry average for the area was $100 an hour. If he actually lost half his customers he would be making the same money, only working half the time, why would that be bad?
But would he really be making the same amount of money? His supplies would be cut in half (if he lost half his customers). In reality he only lost 10% of his customers, so he has an increase in profits of 80%. That is assuming of course that he was making a profit to begin with.
Just to make sure we have an understanding you can’t always just raise your prices. You need to do research and communicate to you customers proper reasons for price increases.
For more information or help with your business check out http://www.joeminorcoaching.com
Joe Minor
Business Fix 