Pricing your services/procedures is one of the most important decision you make as a business owner. Changing your prices is not something you do because you “think” you can get more money for a service/procedure.
If you believe that you need to increase your prices then you need to take the time and do your homework. This starts with competitive analysis. Create a matrix of as many competitor’s prices as you can gather for the same services/procedures that you offer. Then look at the high, low and mean prices within your market.
In addition, if you don’t already have a pricing philosophy you need to identify one. Such as: “We will be the price leader in the market”, “We will be the low cost leader in the market” or “We want to be in the upper tier of pricing in the market”. These are just three examples of a pricing philosophy.
Analyze your pricing once per year and always do it the same time of year. It is much better to implement small price increases annually than to be reactive with a large price increase after not increasing your prices for 5 years. Prices don’t have to go up every year. In recent years, with the recession, there is a good chance that the best decision has been to hold prices.
If you want to discuss this topic further, feel free to give me a call: 203-488-0028 x303.
