Small Business Answer Book
I love Entrepreneur Magazine. I have subscribed to the magazine for five years, ever since I opened my business and each month I find something new or a fresh approach to an old problem.
I save the articles that seem most helpful and frequently thumb through them for new ideas. Today I ran across the Small Business Answer Book written in 2006. So much has changed in the world of small business since then, and yet there are some valuable pieces of information in this indepth series of articles.
The articles are set up in a question/answer format with entrepreneurs asking burning questions about their business. One such question is a struggle for most business owners; the question of pricing and raising prices.
New entrepreneurs usually start by pricing lower than the competition to gain some traction in the marketplace, but their prices can stay too low for too long. It might be time to increase prices if your competitors all charge more than you do, your profit margin is steadily shrinking due to rising operating costs, or the business doesn't have enough capital to expand even though the customer base has grown. If you're fearful about your customers' reactions to a price increase, remember that small, incremental increases are generally easier for them to accept. There are even ways to increase prices without looking like you're raising them, like ending the use of discounts, coupons and product samples. Rest assured that most customers will stick with you if they find value in your product or service.
The article was a series of three – check them out for answers on investing, marketing, operations, insurance, benefits and everything a small business owner wants to know.
Small Business Answer Book Part One
Small Business Answer Book Part Two
Small Business Answer Book Part Three