Thanks for the information on the price increases. You convinced me. I have one more question I forgot to ask. I was wondering - do you think that I should let the clients know before I do the increase, or just start charging more? Thanks
Your question reminds me of gas prices. Do you know why everybody complains about the price of gas? I think it's because you can't drive down the street without seeing the price of gas. I have often wondered if people would still complain if the prices were not posted in those huge numbers.
But back to your question. There are two schools of thought regarding letting clients know about price increases. One school says to post them in advance so people won't be surprised when they come in. The other school says to just raise prices and let it be.
I am an advocate of the second school. I am not aware of too many items that I purchase where I am informed in advance that the price is going up. An exception to that might be if a company is trying to create sales by telling you that the price is going up soon, but that is normally on big ticket items that you don't purchase on an ongoing basis.
I have found that a majority of people don't even realize the price has gone up unless the increase is substantial. Sure there are some people that are going to complain, but then again, they were going to complain even if you gave them notice.
As you can see, the choice is yours. Whatever you do, make sure that you make a good business decision and set up a system for periodic price increases.
Your question reminds me of gas prices. Do you know why everybody complains about the price of gas? I think it's because you can't drive down the street without seeing the price of gas. I have often wondered if people would still complain if the prices were not posted in those huge numbers.
But back to your question. There are two schools of thought regarding letting clients know about price increases. One school says to post them in advance so people won't be surprised when they come in. The other school says to just raise prices and let it be.
I am an advocate of the second school. I am not aware of too many items that I purchase where I am informed in advance that the price is going up. An exception to that might be if a company is trying to create sales by telling you that the price is going up soon, but that is normally on big ticket items that you don't purchase on an ongoing basis.
I have found that a majority of people don't even realize the price has gone up unless the increase is substantial. Sure there are some people that are going to complain, but then again, they were going to complain even if you gave them notice.
As you can see, the choice is yours. Whatever you do, make sure that you make a good business decision and set up a system for periodic price increases.
It is a pleasure to serve you.
Larry Kopsa CPA
