$20 is an outrageous amount of money. I pay just $19.99. This is as hilarious as it is
true. Pricing a product/service right is immensely important to a business. And prices can never
remain constant – It will always go up. No matter how long term your pricing strategy is, one day,
you will have to evolve along with the market when you need to achieve your revenue goals or to
keep up with rising costs of supplies.
If your operating costs are going up - You need to raise your prices.
When your prices are reflecting less than the quality of services you provide – You need to raise
You need more resources (people, office space, equipment etc.) to fulfill your ever-increasing
orders? – You need to raise your prices.
When you are doing so well and overloaded with orders that you need to turn away customers – You
need to raise your prices.
If your government starts levitating your taxes and since you can’t do nothing about it – You
definitely need to raise your prices.
It is great to be competitive and provide an attractive pricing structure to your customers. When
you know that the value you bring to the table is immense and it deserves more than what it is
getting, it is high time you increase your prices. As the great Warren Buffet puts it, Price is
what you pay. Value is what you get. If customers see value in your products or services, they
wouldn’t mind spending some more.