Why think about price?

There are three ways to raise profits:
·         you can increase volume (if you are profitable)
·         you can cut costs
·         or you can raise prices.
By raising prices, you are effectively increasing your average transaction value – and, what is surprising to many people is that even a small difference in pricing can lead to a large gain in profit.
The reason is simple.  Every dollar you gain by raising prices is pure profit.  It doesn’t cost you anything.
For example, if your business operates at a 10 percent profit margin (say you earn 50,000 on 500,000 in sales), if you can raise prices even by 1 percent, that will boost your profits by 10 percent or an extra 5,000 a year.  Is charging $387 instead of $383 going to lose you any customers?  The answer is probably no, unless you are selling a pure commodity.

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