It’s Monday—Back to Business! Growing a business can be stressful, but you don’t have to stay in a constant state of growing pains. There are a few ways to take your company to the “next level” but most of them require using more of your resources. Instead of spending more to earn more, my suggestion is often to increase prices. If that sounds counterintuitive, read on to learn why it works.
Traditional Solutions For Overwhelmed Business Owners
Successful business owners sometimes find themselves overworked and underpaid due to a surge in demand. This type of stress can be overwhelming. If your business is taking up all of your time and energy, consider:
- People – Hire help and delegate.
- Technology – Automate and be efficient.
As easy as these solutions may be, it can come with one major challenge: cash. Even if you can afford to do those, it may not make the most sense to spend the money right now.
Increase Prices To Grow Your Business
Not ready to spend cash? Then increase prices… yes, INCREASE your prices. This will slow down your demand, steady your income, and free up your time. This technique puts you in the “premium” or “elite” category of companies in your market as a result of simple supply and demand. You probably experience this every day and don’t even realize it.
Increase Prices To Control Supply and Demand
Maybe it’s that one restaurant you don’t mind driving a little further for or spending a little more when you’re there because it’s THE ONLY ONE! What about that brand of designer handbags or clothing? Do you really complain about the price or is the product “worth it”?
Increasing prices eliminates the customer who is buying out of convenience and allows you to focus on the ideal customer who will pay more. Over time they will likely bring in additional business at that higher price point—this strategy does not restrict top-line growth!
Stacy Saenz, Director of the WHH Controller Program
Stacy is a Fresno State educated MBA who has served in accounting, controller and CFO roles for several local businesses. Her unique talents and experience teach business owners to translate numbers into useful and forward-thinking business decisions.
