Don’t Fear The Reaper

When was the last time you reviewed your prices?

Recently, I’ve spoken to a few business owners who admit that they haven’t increased their prices in 3 years or more.

Given the inflationary environment we are living in, this is a dangerous situation to be in.

Business costs are becoming more “VUCA”:

·??????Volatile – sudden, sharp increases particularly in raw materials.

·??????Uncertain – it’s unclear how long cost prices will stay at current levels.

·??????Complex – there are multiple factors affecting your cost base.

·??????Ambiguous – even when the data is clear, its hard to know what to do about it.

Did you know that ￡100 from 3 years ago is now only worth ￡92.93 due to inflation? (Source: BoE)

So for many businesses, costs are rising and profit margins are being squeezed.

To address this situation, you will probably try to either reduce your costs or sell more volume to solve the problem.

But there is a better way.

A more intelligent, adaptive approach to pricing might be a better way to grow your business.

In these times, it makes no sense to still be relying on a pricing model you created more than 3 years ago.

And as well as updating your prices because of increased costs, you might very well be better off developing an entirely new pricing model.

Inflation and rising costs might be the death knell for your business.

But don’t fear the reaper.

Have a look at our short video which explains how we help our clients achieve a 27% average increase in net profits from developing a new pricing strategy.

Or get in touch if you have any concerns about your costs that you’d like to discuss.