For small businesses, establishing prices for your products and services is an important activity. Here are a few factors to consider when thinking about adjusting your prices.
- Should you reward certain or all customers when they habitually pay their invoices early or promote your products or services? As an example, offering one time discount for new successful customer referrals.
- Should you establish a tiered pricing program based on type or size of customer, product line or location? Are there benefits to keeping certain clients to establish a greater niche presence, or growing a new location?
- Should you adjust prices when customers use a combination of services? As an accountant or attorney, how valuable is a client who uses your firm for both business and personal services?
- Should you reduce prices for a short period of time to increase sales? Will higher sales volume allow you to reduce purchasing costs or help to recoup the costs of new software or training?