How long has it been since you raised your prices? Two years? Five years? Ten years? Never? Seriously?
And WHY haven’t you raised your prices? My guess is one or more of three reasons: A) FEAR that you’ll lose customers if you charge more, B) INERTIA and/or C) IGNORANCE of the damage done by not raising your prices every year! Let’s work on ‘C’ first!
Read this next sentence carefully: Everything in the pricing universe inexorably goes up in price over time. (Except maybe your charges!) You pay more today for virtually everything than you did one year ago! If you doubt me just CLICK HERE to check CPI data!
When you timidly postpone AT LEAST matching the CPI every year you (and your family) are being nibbled away by inflation. So this very week I want you to…
This week raise your residential prices by AT LEAST 3.22%!
You say, “Well, Steve, 3.22% doesn’t seem like that much…” You’re correct! And that is my point! This small 3.22% increase won’t even be noticed by the vast majority of your existing customers!
Where did I get my 3.22%? Because that has been the average annual inflation rate since 1913 when the U.S. government started tracking inflation! 3.22% doesn’t sound like much? THINK AGAIN! At 3.22% prices will double every 20 years!
And yet what effect can a small yearly increase have on your profits? For example, if ten years ago your base residential price was a (likely too low) .24 per foot and you had ONLY matched the (lower) inflation rate each year today you would NOW be profitably charging .40 @ per square foot! And this dramatic increase done ‘painlessly’ with small (virtually-unnoticed-by-your-clients) yearly price increases every January.
Worried about losing your past customers with this % increase? Fear no more when you CLICK HERE for my “We were forced to increase our prices” script.