When was the last time you raised your prices? If it’s been a while, what’s stopping you? Look around. You’ll notice that prices are going up everywhere on everything. Today is the day to raise your prices, and below are five reasons why.
Reason #1: You’re Worth It. If you are pushing out a good product that customers cannot get from the guy down the street, your prices should reflect that. You will not lose as many customers as you’re afraid you might, and if a few do disappear, they’ll be replaced by those willing to pay for the quality you’re providing.
Reason #2: Costs Continue to Rise. As I mentioned before, the cost of everything around you is rising, from gas, to produce (have you bought a lime lately?) to wages. If you don’t raise your prices, you’ll find it more and more difficult to pay for these everyday costs.
Reason #3: You Want to Grow. If you ever expect to grow your pizzeria and your staff, allowing for new offerings and possible expansion in the future, you’ll need the capital to make it happen. A price increase can help to fund these dreams.
Reason #4: You Are Currently Undercharging. It’s pretty safe to say that you’re probably undercharging for some–if not most–of the items on your menu. Average food cost is usually around 31%. Is that your current average? Check out this handy guide to figure it out.
Reason #5: Customers Expect It. Believe it or not, with every business around you raising prices, your current customers almost expect to see your prices go up, especially if it’s been a few years since the last increase. Just let those who question your decision know that raising prices is necessary in order to continue providing the quality of food and service they’ve come to expect. Not many people can argue with that.
Have you raised prices recently or thought about it? What has been the reaction, or what are your concerns? Let me know in the comments.