10% price increase isn't enough anymore #pricingstrategy #entrepreneurship #money

11 Mar 2024 · 0 min

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Robin Waite says a 10% price increase just matches inflation and doesn't grow profit. To actually make more money, businesses should raise prices 20-30% over the next year, especially as inflation compounds.

If you think about the cost of living and things like that, if you just put your prices up by 10%, well, you've just kind of— you've actually broken even against like the inflation price rises that we're dealing with at the moment. So actually, in order to then make a little bit more profit out of it, you've probably got to be looking at maybe 20%, or if inflation carries on at the rate it's going at the moment, it compounds. So you could end up having to put your prices up by 20% or 30% comparatively over the next 12 months. Imagine that, putting your price up. So not doubling it necessarily, but I'd invite you all to try and find a creative way to increase your prices by 30%.