Pricing is a key strategy for increasing profitability, but one that's often pushed aside for fear that increasing prices will lead directly to a loss of sales and customers. But Dr Greg Chapman, of Empower Business Solutions, says that's not necessarily correct. It all depends on how you go about it. Changing your marketing strategy, identifying your "best buyers" (those who aren't simply motivated by price) and your points of difference, repackaging your product or service, increasing prices incrementally: they can all help soften the impact of a price rise. And it's important to review your costs: you may find that your pricing means you're actually making a loss on your product. In that case, a price rise is essential, and the fear of losing customers has to take second place.
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