Boosting Profit: Raise or Lower prices?

Discussion in 'Growing and Managing a Business' started by Jay., Mar 8, 2013.

  1. Jay.

    Jay.
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    In order to increase the profit a business is making, do you find it's generally better to lower the prices of your items in order to sell more of them, or raise the prices hoping that you will still sell the same amount but of course you'll earn more per sale?
     
  2. patrick0001

    patrick0001
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    It depend on the products and competition. If the competition is high, we may market the product to new market e.g. other region or state, so that the product create a niche demand and relevant for high price. Alternatively we may stay with the same market and lower the price to begin price war campaign.

    Personally I don't like price war, because it is lose lose situation and result everyone bleeding.
     
  3. Rocky

    Rocky
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    It varies for each business. If you have a monopoly position in the market and your customers have no choice but to buy your product then price increase is not a problem, but if there is cut throat competition and you want to get hold of the market and increase your profits then reducing prices would get you more clients and eventually higher profit. The concept is simple with low prices you and high volume you can have more profit or with high prices and low volume you get good profit. But it all depends on your business and market situation.
     

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