Category: SM1: How 1% Price Change Could Give 11% Profit Increase

Price is a major determinant of the profitability of your business! SM1: How 1% Price Change Could Give 11% Profit Increase shows you why. A consultant study across 1,200 major businesses found that a 1-2% increase in price, assuming demand remained constant, on average would have increased the company’s profit by 11%. Clearly, this could be a quick boost to your company’s profitability.

First, look at a rapid profit increase from price change. Second, work through a longer term pricing system.

Is your business profitability stagnant or declining? SM1: How 1% Price Change Could Give 11% Profit Increase is a must for you.

SM1.1 Rapid Profit Increase from Price Increase

As was outlined in the introduction to our Pricing Module, even small changes in the prices of your product goes 100% to your bottom line Profit (assuming demand doesn’t change). Consider a business turning over $500,000 per year. Let us further assume that it makes a 5% profit on that, which gives it a Profit of […]

SM1.2 Longer Term Pricing Systems

Price is a major determinant of the profitability of your business! A Price change of as little as 1% can often lead to profit increases of up to 11%. You can make quick changes by changing your existing pricing by a percentage figure that, essentially, you think you can get away with. However, in the longer term, you might want to develop a system to your pricing so that you get a method of getting the best prices you can. Price is one of the major determinates of Revenue so it is an important issue to be aware of. This is a blue belt topic.