A table top stained glass lamp was not selling. The sales manager decided to lower the price so that the 10 pieces in the shop could be disposed off, for a smaller margin. The salesman did not really understand the instruction and increased the price. By the end of the week, all the pieces had sold out. Reducing prices may not necessarily mean quick sales. There are a few ways you can manage your pricing and make profits.
- Be brave while charging higher prices. Anxiety will only lead to further worries, go ahead and increase the price. If it is not accepted by the customers, you can reduce the price or offer a discount on the higher price. If the customer loves your product, they will buy it no matter what price.
- Inform your customers about the price rise or advertise it at your selling point. They can stock up. Explain why you are increasing the price. You may lose a few customers but the good customers will always come back for your offering.
- Communicate the increased value of the offering along with the price rise. You may have increased the number of products in the offering, or increased the quality of the product or added another product along with the same offering.
- While you increase the price, simultaneously offer another product with a lower price.
- Increase the price of your offering, and decrease the production costs to increase profits.
- Evaluate your offering in terms of quality and quantity and compare with competitors. When the figures that come up are not fair to you or your customer, adjust your pricing structure so that it benefits both.