SM1.0 How 1% Price Change Gave 11% Profit Increase
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%. […]
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.