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%. 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.
20Oct
SM1.1 Rapid Profit Increase from Price Increase
As was outlined in the introduction to our Pricing Module, the extra profit from 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...