How to convince partner to do annual price increases

dentallabdentallab subscriber Posts: 2
edited January 2007 in Sales
Help!  I need to find a way to convince my partner that we need to have annual price increases of at least 2-3% to keep up with our costs.  He is afraid of alienating our customers.  I know that our prices are slightly above national average in our industry but we also are producing a higher end product so our prices should be higher.  I need some good advice from some more experienced entrepreneurs.  Thanks for you help.  CJ

Comments

  • MNGrillGuyMNGrillGuy subscriber Posts: 2 Member
    Test is out, see how it goes.  I can`t imagine your customers would even notice or care about a 2-3% bump.  If they do, then you are more of a commodity then you think and might need to revisit the BP.
  • dentallabdentallab subscriber Posts: 2
    Great argument...I`ll use that.  Thanks!! I agree with your analysis and I think since I`m too close to the situation have lost some creative ability to think of how to present this.  Love you idea.  CJ
  • daleyfla99daleyfla99 subscriber Posts: 1
    Depends on what you are selling.  Check your competitors prices and if you can compete and still keep market share, and are still booking a decent profit, I would not raise prices either.
    The comment is correct that if your clients are only with you on price they are a commodity.  However there is significant cost to acquiring a new client, so work on strengthening your existing relationship with them, then pass on your price increase. 
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