In 2020, you’ve either had a better-than-expected year, or a worse-than-expected year.
In either case, probably the last thing on your mind right now is whether you should increase your prices in 2021, right?
- If you’ve had a bad year, why on earth would you put prices up next year?
- And if you’ve had a good year, lets keep making hay while the sun shines, right?
Well, in either case, there might be some good reasons to think more carefully about your price plan for 2021.
If your business is growing, you should think about capitalising on this by improving your pricing. If you have not changed your prices in over a year, you could be missing out on untapped value.
And if your business is struggling, it might seem counter-intuitive, but often the best way to improve your situation is to take another look at your pricing.
Rather than lowering your prices to compete, you would be better off re-packaging your offerings to include some additional higher priced options which customers can choose if they prefer. There is evidence that shows a tiered pricing strategy increases both your sales and your average selling prices.
A badly thought out pricing model is the quickest route to business failure.
But being clear about your pricing strategy is the most important thing you need to do to ensure your survival and ongoing success next year.
Give us a call if you would like some help working out your pricing for 2021.