Most companies, even the ones that are leaders in their industries, are constantly looking for ways to increase new sales, new accounts, and overall revenue. In fact, they’ll try almost anything to see if it yields the right results.
With that in mind, we’d like to share an unconventional tactic that we have seen work from time to time: Raise your prices to increase sales.
Although that’s contrary to popular thinking, increasing prices isn’t always just for adding value to each sale – it can actually help you sell more of your products and services, as well. Here is why:
When you raise prices, customers assume you offer higher quality. It’s amazing how many things in the world we are willing to pay premium prices for simply because we assume the brands in question are worth the extra money. Sometimes they are, and sometimes they aren’t, but there is no doubt we associate higher prices with higher quality.
Higher prices tend to attract a different kind of customer. When you are at the bargain-basement level for your industry, you are often appealing to buyers who either don’t have many choices, or are prone to watching their budgets very carefully. That means more complaints and higher percentages of returns, at least in some cases.
Could you actually increase sales by raising your prices? We can’t tell you for sure, but it might be worth considering and even testing.