Forums: Discussions for entrepreneurs and small business.

Interesting article, but I didn`t find an argument about one thing: offering a reason for price changes.

Seems to me that most people will not only form reference prices and feel whether or not something is valuable. They`ll also apply some thinking as to what the seller is going through.

The article makes the point of "think like your customer." That`s fine, but I believe customers also can "think like a manufacturer."

If you raise price, but also explain the reasoning behind the price hike, I think most people will then decide on whether they can afford the item.

I remember working at LensCrafters. People could come in to see the various eyeglass frames, and look at the prices. Some would say, "Oh, that`s too expensive!"

No, it`s NOT too expensive! That`s the price.

A person certainly can and should say, "Oh, I can`t afford that." But that`s not the same thing as judging on behalf of the manufacturer that the price isn`t valid.

I agree, Craig.  It`s very dangerous to react and change pricing based on what we think is the emotional climate of the moment.  You may not be able to undo your change once the market is stabilized.

It`s more important to be sure the perceived value of what you are selling is in sync with your business goals.  Even in this economy, there are still people who will be high dollars for various products -- mainly because you`re not going to skimp on certain items that are important to you.

 

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Melissa Fox, President MarketEASE
http://www.mymarket-ease.com
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I raised my prices in 09.  I`ve actually become more selective overall, and the rate hike only helps weed out who I work with.  Seems like the opposite of what most people would do, but I`m much happier.  Fewer clients, but more focused on the ones I have and they`ve all been better quality/more professional/really looking for me to join as an executive rather than someone who just needs xyz done as cheap as possible.


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Rogue CFO
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