How Often do You Review Your Pricing? Canada 150 Recommendation #74
Monday’s= Small Business
Small business owners are often reluctant to increase their prices as they fear losing customers. However, a bigger fear should be the fear of losing money.
As expenses rise the ability to react quickly to these increases with your own price increases will determine whether you are making money or not.
Smaller enterprises do not normally compete on price if they have large competitors. For example, a small retail store does not have the purchasing power to compete with a Walmart. What a smaller business does have is the ability to offer more personalized service to their customers. Smaller businesses therefore often will find a niche market where they can make a living by offering good products but not at the lowest price.
In any case, a smart business owner will have a plan to take a look at their pricing on a regular basis. Once a year would be the minimum and every three months or so would be a best practice.