Competing on price is a no-no

Yesterday we talked about measuring your progress.
Today we’re going to talk about raising prices.
That frighten you? It shouldn’t. But try this:
Strategy #1: Look hard at what you charge.
Naysayers will tell you this is no time to raise rates.
The economy’s in the toilet. Gas prices are soaring.
Raising rates will only cost you business, they’ll say.
Poppycock. Your competitors are raising their rates.
They have to. Their cost of business has jumped, too.
How long has it been since you adjusted rates 3% to 4%?
Your prices are creeping up 3% to 4% a year — or more.
Regain those increased costs to protect your profit margins.
Trust me. You will slowly bleed to death if you don’t.
Strategy #2: Check what your competitors charge.
Are you competing solely on lower prices?
It’s time to rethink that strategy. The solutions:
Offer more value, package deals, better bulk discounts.
Throw in a freebie with a long-term business agreement.
If you’re in publishing, as we are, raise your cover price.
Higher single copy prices encourage more subscriptions.
Higher prices are not suicidal. They make good sense.
Tomorrow we’ll take a break and talk about peach cobbler.
That’s right. One of our favorite deep dish treats.
Until then, read more on strategy by clicking here.