Raise Your Prices 10%

• Raising your prices can move you to a more upmarket clientele.
• Allows you to distinguish yourself from your competition.
• Increases the perception of quality so can actually lead to increased sales volumes (in some cases). 
• Eliminates low quality price sensitive customers.
• Allows you to sustain your desired profit margins.
• Price increases may position your product or service as a 'premium product'.

Factors to consider:

• Determine whether your product or service has an inelastic demand curve – there is no point increasing your selling prices if it results in a substantial decrease in volume sold.
• Find out what your competitors are offering and their current pricing.
• Determine your objective in increasing prices – i.e. to increase sales, increase gross profits, increase the perception of quality, etc. 
• Calculate the financial effect of higher prices and lower volumes on your gross profit and net profit.
• Increasing selling prices often requires the business to increase their service levels at the same time. 
• Consider the effect of increasing prices on business reputation, brand quality, and credibility.
• Limit the initial selling price increase to 10%, and monitor the effect on sales, gross profits, and net profit.