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upping your prices

by seobro
4 replies
I hear the call loud and clear about people wanting to raise prices. They see the experience of other companies. Well, here is my experience. I have found that raising my price 10% typically cuts my sales in half which means I make less money.

Of course, the reason to raise prices is to make more money. Right now, we are in a very poor economy. People are counting their pennies. Few have an extra $20 they can afford to throw away.

Sadly, many buyers are out of work, and those with a job have been forced to take cuts in pay. Most will drop you if you raise the price of your product or service. In fact, many are on the fence as to whether they should keep using your service.

That said, upping prices on critical items like food and fuel can help your profit to increase, but only if you are in a tiny town and the only grocery. Few people think that e-books are necessary.

One person told me his pricing model was a dollar for ever 100 pages. The best sellers are 99 cent specials and the next price point is $1.99 so you get the pic. It is a volume game. People are trying to move digital goods now. They save on shipping and paper.
#prices #upping
  • Profile picture of the author vok
    I think it's all BS. Apple Inc. Is a perfect example of how to can take $200 worth of technology and stick a $2k price tag on it.

    The media programs this fear and hate into people, the funny thing is people buy it.

    I mean oil is high, people want to drill for oil. Market drills.

    There a gold rush, so sell and market shovels.

    Whatever, you just have to think and go after those with money.

    Just simple logic you're not going to make money selling to those with no money.
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    • Profile picture of the author funkynassau
      I can only talk about our experiences, and we raised our prices by $5. a kit, across the board in June. Granted our product is not expensive to begin with, and sales have increased not decreased as a result. If your product is too cheap, it will be perceived as having no value. We put the price up because of price increases in some of the items in our kits, so we really arent making any extra money.

      The (not so) good old post office will jack up prices next January, and I expect we'll have to raise ours in order to cover that increase.
      Signature

      ChipFixx custom mixed auto touchup paint kits.
      http://www.chipfixx.ca

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    • Profile picture of the author funkynassau
      Chriswick, we have found that the people who buy our ChipFixx kits tend to have more expensive cars, like BMW, Cadillacs, Mercedes, Audi etc. The guy with the 1990 Pontiac doesnt tend to buy our product. I think those with less money and older cars are too busy staying alive and feeding the kids to worry about stone chips on their car. We didnt think in the beginning that we'd have success with the guy with the fancy car, we thought it would be the mid 2000's Toyota etc. As a result we are working on a premium kit for Christmas.
      Signature

      ChipFixx custom mixed auto touchup paint kits.
      http://www.chipfixx.ca

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  • Profile picture of the author inhwanie
    People can say economy is bad as much as they want (and I also agree it's pretty bad) but if you look at the population as a whole, people always have money to spend. The highest unemployment rate in US history was about 25% so 1/4 people. Yes, this is a devastating number but there's still the other 75% who are employed and still buy or strive to buy.

    The real issue is whether or not people will buy but rather if they quality of the product is high. When people are short on money, they still spend it but they become more aware of the quality of the product they are considering to buy as they want the most out of their buck.
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