Businesses, particularly smaller ones, often neglect to implement annual increases in their prices, rates or fees: some due to poor management; many in fear of losing clients in a competitive market (as was particularly evident during COVID), and most simply due to a lack of know-how.
The reality is that not implementing annual increases will directly impact your profitability, as your input costs increase each year due to inflation. Maintaining the same prices for goods or services, while the cost of inputs continues to increase, will soon leave you with a substantially reduced profit, especially in a high inflation environment. Find out here how structured price increases contribute to long-term profitability and how to implement increases without losing clients.
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