One of the ways to grow your business is to make more money from it. The way to make more money from your business is to make more sales. The way to make more sales is to sell more and more of your products. But here is another fundamental way: increase the prices of your products.
Increase the prices of my products? Oh yes. You can make more money in your business by increasing your prices. But as you know, it is not that easy to increase the prices of your products. The good thing is that you can find ways to do this. I will give you some strategies that can help you to subtly increase your product prices.
To subtly increase your product prices, make sure you are producing high quality products. Let me share a story with you. A young man came for one of our seminars at the WORLD FARMERS CENTRE in Lagos. He narrated how the farm he was working for was getting low profits and very low sales from selling their garri made from Cassava. Why? Because the garri was full of sand and customers were complaining and sales were very low.
Then his boss sent him to be trained in another cassava farming operations where they do garri processing without sand pollution. By the time he came back, they were also able to produce their own garri without sand infiltration. And they were able to increase their prices. According to him, they are still not able to meet the surge of demand, even as they keep increasing their prices.
So, find ways to increase your prices from time to time. THIS IS VERY IMPORTANT. You can also increase your prices by going for premium customers. You can always develop premium customers for your products. The more premium customers you have, the better you will be able to gain more sales and profits through price increases . But you must carefully do this so that customers won’t think you are taking them for granted.
You can also increase your prices by being very sensitive to the market demand and supply dynamics. Once you sense that demand is getting higher than supply, you should quickly seize this window to increase your prices. If you are not sensitive, you can miss this window. This window will always come from time to time.