5 Pricing Strategies for Small Business

© 2011 Apptivo Inc. All rights reserved. 5 Pricing Strategies for Small Business No one would argue about just how tough the economic front is. During these sluggish times businesses attempt to compensate by reducing operating costs or changing their... More

© 2011 Apptivo Inc. All rights reserved. 5 Pricing Strategies for Small Business No one would argue about just how tough the economic front is. During these sluggish times businesses attempt to compensate by reducing operating costs or changing their pricing. Let’s look at 5 pricing strategies for small business. Strategy #1 – Don’t Slash Prices Except to Move Obsolete Inventory When economic times hit, the most common mistake small business makes to try to increase sales is to slash their prices. According to the experts, that’s not what you should do, unless you are trying to move obsolete inventory. Instead, leave your prices alone and get creative. For example, let’s say you charge $48 a year for an annual subscription to your magazine. Instead of advertising to annually, try “Only $4. 00 per month for a monthly subscription. ” If your business accepts credit cards then you can setup a reoccurring payment that’s billed monthly. It sounds like much less money and therefore Less