And the funny thing is that most business owners are too terrified to do this. They seem to believe it will drive them out of business! The exact opposite is true. You'll find that most of your customers won't even notice. And if they do, chances are they won't care. Those that notice and object are probably your "C" and "D" Grade customers anyway. My experience is that business owners have more of a problem with this strategy than their customers, so don’t over-think it, just do it.
You need to understand that this is the fastest and best way to bump up your profitability. But if you're too scared to increase your prices across the board, try doing it to just 80 percent of your range. Choose the slow movers first, increase their prices, and leave your fast sellers until last.
It's funny how many business owners instinctively want to cut prices to increase profit. This is something I never advocate. For most companies, a pricing increase of 10 percent and a new focus on the average dollar sale will invariably lead to more profits for the business. Cutting prices simply won’t help you grow your profits over the long term. In fact, it usually does the opposite and to make up for the profits lost to discounting you have to generate loads of new customers, which is typically expensive and time consuming.
Over the years, we’ve instituted this strategy with thousands of businesses and it is almost always a positive for the company’s bottom line, so don't write off this strategy without a further thought. Thousands of businesses I've coached have increased their prices without any negative effects.
These companies benefited immediately and marveled at the effect it had on their business. So resist the temptation to give money away before you've even begun negotiating with clients or selling to customers. Don't do it. Instead, raise your prices a bit and measure the results.