Did You Set the Right Price? - Don't forget to register for Pricing for Profit on January 18, 2023 from 12:00 - 1:00 pm.  Here's the registration link: https://meridianregion.ca/general/pricing-for-profit

Are you putting your company’s pricing strategy under the microscope in 2023? If you said yes, you’re
not alone! Concerns over supply costs and availability, staffing shortages and inflation have caused
many entrepreneurs to revamp prices, trying to adjust to the dynamic marketplace. Making a change to
your prices can seem daunting, especially if you fear your customers will resist. But we all know that
nothing stands still in business, and prices are no exception! Here are four factors to keep in mind as
you evaluate your current pricing strategy, and consider changes.

1. Your company’s financial statements offer a wealth of information! Keeping your bookkeeping
records up-to-date is a smart strategy, especially when analyzing your operations for price
adjustments. From your financial reports, you can find out the cost of goods you supply to
customers, your company’s operating expenses and you can even determine your overall
business profitability. Don’t like what you see? Get curious about why the figures aren’t in line
with your expectations. With your Income Statement in hand, you notice areas where you can
trim expenses, adjust profit margins and sensibly change prices on the products or services you
sell.

2. Feeling overwhelmed with booming customer demand? As you grow your business, you’ll
undoubtedly experience this fortunate circumstance. It’s the signal that something needs to
change . . . you may need extra help to satisfy increased demand, or you may need to evaluate
your product/service price points and make adjustments because they’re too low for the current
marketplace. It’s a hard decision to make, but better to address this situation when you first
receive the signal, than waiting until you’re overwhelmed and facing burnout.

3. Are your competitors cutting prices? If you can, avoid playing this game! A better approach
would be to add value to your product or service offer, rather than permanently reduce the
price. If you’ve done your homework and set your prices to cover costs and achieve a specific
profit percentage, so lowering prices will erode your company’s profitability. Better to add
value to the product or service, keeping prices in line with your well-thought-out strategy than
to play the lowest-price game. Adding value also has the added benefit of enhancing your
company’s brand – it will get customers talking about their experience and likely result in even
more clients over time!

4. Plan for a ‘price check’ periodically, so you know your prices are set right! Study your financial
statements, analyze customer demand, and conduct a competitive analysis of your market on a
consistent basis. Maybe once a month is appropriate for your business or every quarter is
suitable in your industry – whatever the timeline you set, make sure to include this task on your
To-Do List. That way, you won’t have to wait until you feel the pinch of pricing problems. You
can make pricing decisions as soon as you realize there is a need for change!

Making changes to prices may still send your heart racing, but knowing your decisions are based on
facts and your business goals should make it easier. Paying attention to prices will help your
business stay strong, even in tumultuous markets, and that’s definitely time well-spent!