Raising Prices While Increasing Sales

[MrHowie]

I used to agonize over price increases. I would do the “well I’ll give it to you for the old price this time”. I finally realized it didn’t matter and I was just selling myself and our product short. I try to not do anything more frequently than twice a year with price adjustments. We do compete on the lower price spectrum, but we do have an excellent product, in my opinion far superior to anything the customer can get even close to the price. Last time we did an increase I saw some customers didn’t order for a little bit, but it wasn’t long before they came back. Again, better product and service can offset price within reason. I explained to my staff, if the customers asks, “we had a minor price adjustment to offset increase in cost.” I can count on one hand the number of people that made an issue out of it. You have a choice to either be in business and making a living or not, most people understand that.

 

[pizzapiratespp]

I to have spent many a day agonizing over price increases. So much so that I didn’t do an increase when I should have. The last year and half we have had to do 3 increases, for a total of about 25%. We have seen some customer resistance, but very little. If you go back 2 years we are selling about 10% more product at 25% higher price. This equals out to about a 37% increase in sales. The 3 increases have turned out to be a great decision.

 

[pizzanow]

The good thing about price increases, is everyone is doing it. At least in my area. I love seeing all the fast food prices going up, Subway, etc. I think the public is becoming a little more numb to the fact that costs are increasing and there is less backlash now then there used to be.