Do you really know what the market value of your goods or services are? The answer generally tends to be defined by your customers in your specific marketplace, so why not ask them?
It's not always possible to experiment with pricing. If you do it too often, you'll end up with a confusing legacy and may even create ill-feeling amongst the customers who ended up paying higher rates. This said, very few companies take the time to understand what the real value of their goods and services are.
Up and down!
Traditional types will tell you that there is only way way they want to see their prices go... and that's up. Customers will tell you that the only way they want to see prices go is down. How to tackle this dilemma? Best to experiment with both...
Price increases
If you're great at what you do or your products really are outstanding you deserve to be remunerated at the best possible market rate. This may be 10%, 15% or even 20% higher than what you're currently charging. Why not try increasing your prices to see what happens - if you pitch it too high you'll soon know as no-one will buy what you're offering. If you get the same level of take up you may still be pitching too low.
Price decreases
Conversely, experiment with lowering your prices. Obviously you need to understand the profit margins in your business clearly but you may actually find that lowering your prices results in finding the optimal level of business for you. After all 100 transactions of £10 profit each (£1000) is better than 60 transactions at £15 profit each (£900). You may want to offer incentive-based pricing discounts such as the ever-popular '3 for the price of 2' type deals. Experimenting with pricing can result in significant increases in revenue.
