If there's one single piece of advice I could give any business that is guaranteed to improve performance immediately, it would be this...Put your prices up.
It may seem shocking – but there’s sound logic behind it.
It’s the single most powerful decision you can make.
No other factor has such a direct impact on your bottom line.
A 10 per cent increase in price, all else being equal, flows straight through to profit.
However, a 10 per cent reduction in cost simply doesn’t deliver the same effect.
It is the most misunderstood and least considered part of the business mix.
Too often, pricing decisions are made instantly, yet their consequences linger for years.
We spend months refining our products and marketing and systems yet often spend mere minutes deciding what to charge.
Pricing is usually driven by fear
We worry that if we charge more, customers will walk away.
Yet while price and demand are connected, the relationship isn’t linear and most businesses never test or measure it properly.
Ask yourself: how much would demand have to fall before a price rise actually hurts profit?
It is a simple calculation, and one well worth doing.
In truth, many businesses leave money on the table because of a lack of confidence, either in themselves, their product, or their ability to sell.
Pricing is complex and critical – and few people truly understand it
It deserves serious attention.
If you want to go deeper, I highly recommend ‘Confessions of the Pricing Man: How Price Affects Everything’ by Hermann Simon.
Too many people use a ‘cost-plus’ mindset
They calculate what it costs to produce something, then add a margin.
A marketer, by contrast, starts with the question: “What will customers pay?” and works backwards from there.
Price is the universal excuse
Ask a customer why they didn’t buy, and they’ll often blame the price.
Why? Because it’s easier than saying they didn’t like your product, your sales approach, or even you.
Claiming ‘It’s too expensive’ is often a reflex, not the real reason – and should be treated as such.
Price is just one part of the sales equation
For customers, factors like responsiveness, trust, likeability and desirability often matter more.
But because price is tangible, it becomes the easiest scapegoat when things don’t go to plan.
So do yourself a favour – learn about pricing, believe in yourself and your product. And put your prices up.
www.kinnery.co.uk
