Pricing Review

When was the last time you reviewed your rates?  Are your prices in the same ballpark as your competitors’ for the quality of the service/goods provided?  Have your costs risen but your prices remained stable?  On an annual basis, look in some detail at what you are charging your customers, and where you are making money and where you are not.  If you need to increase prices, arrange service review meetings with your customers (particularly those who spend a lot with you), and explain why the rate review is required – people are more understanding if they appreciate the rationale behind a price rise.  If your competitors are steadily encroaching on your market share, perhaps you need to consider a lower cost ‘budget’ service offering or product to compete?  Unless you review your pricing on a regular basis, you cannot be comfortable that your strategy is still relevant.