One of the quickest and possibly the easiest ways to increase revenue and cash flow to your business is to increase the price of services or products your organisation sells.
This may sound like a no-brainer, however, you will be surprised by just how often this simple tactic is overlooked.
You know your business and market better than anyone. But when was the last time you implemented a price change? Most businesses are fearful of increasing prices in fear of losing customers. Most businesses when thinking of price changes believe that significant adjustments might scare people off.
This is where the 1% rule comes into play.
What would happen if you increased your prices by just 1%?
Would your customers even notice the change? After all, 1% is tiny. I would hazard a guess that very few of your customers would raise any issue to this increase.
Let’s work this through a simple example and look at the impact increasing prices can have on your business.
Say for example your business makes annual sales of $100million per year. Adjusting your price by 1% would mean an additional $1million in revenue. This is a pure profit being returned to your bottom line which has an immediate impact on profitability.
Think about the impact this may have if this 1% increase happened twice a year. Or your increase was at 2, 5, or 10%? What would the impact be of small adjustments to your bottom line year after year?
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Why not download the full article and read up on the 7 Levers for Rapid Business Growth and Increased Business Valuation article?
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