Hi all, this is my first post, sorry if this may not be the right forum, but since my questions are quite general and the "Sales & Marketing" forum seems oriented toward online shopping, I decided to post here. Anyway, a little introduction. Together with my wife I own a store in Perugia (Italy). We are not salesmen under any aspect and opening the store back in 2010 was mostly based on a bet than on a solid marketing project. So far we can say that the bet has won: given all the difficulties of the time, the store is doing good, and it really stands out in the business contest of our small city. We sell design products, and in general our prices are considered medium-high. Sometimes it's hard to sell, but (always generally speaking) people are aware of the fact that quality has to be paid a little more. Now the problem. In the last semester most of the producers raised their prices, forcing us to raise out prices too. The point it that one of our most selling producer raised the prices also of 20% over the last seasons, and I'm quite worried that we won't be able to sell their products like before. Now, my question is this: should we raise the our prices according to the producer or we should keep the prices lower? An example: Before: we used to buy product A for 14€ and sell it for 36€: we charged 2.5 over the original price (as suggested by the producer). Now: product A now costs 17€ and it should be sold at 40€. As stated before, we usually charge 2.4 / 2.5 over the price we buy at. My wife opinion on charging less than that is that we will actually loose money, I say instead that we would earn less from each sale, but we will eventually sell more. Since none of us is an expert, we cannot really figure this out: and we basically yell at each other! So, sorry for the long post, and sorry if it doesn't make any sense, but if someone can help us figure this out, I will really appreciate! Sorry also for not being really technical, and for the fact that I may have explain the fact in a lousy way. Beside the fact I'm not a real salesman, English is also not my language. Thanks a lot! Ricroma PS. On a side note, we also run a small online store. I also think that keeping the prices down on the online store can give us a little chance in comparison to the big guys selling the same products and that are raising the prices according to the new catalogs.