In this episode, our founder, W Michael Hsu talks about how raising prices can help your business and how 1+1+1=19. He’s not talking about raising your price by 10% or 15%, but simply make 1% change to impact your Net profit. What are you waiting for? Let’s jump right in!
Time stamped Show Notes:
- [00:10] Today’s topic — Raising Prices
- [00:20] Entrepreneurs are terrified of increasing prices.
- [00:30] Based on Michael’s nine years experiences in this field, he shares some of his thoughts.
- [00:37] All you have to do is move your metrics by 1%.
- [00:48] Move these levers by one percent and see how it improves your Net profit.
- [00:53] So Michael brings in the concept of 1+1+1=19
- [00:57] You can do a quick math or use our Power of one free template.
- [01:10] Try to increase 1% in your price, decrease 1% on Cost of goods and 1% on overhead.
- [01:18] The result usually will be 19% or even more different in your Net profit.
- [01:33] Don’t think about increasing price by 10 or 20%
- [01:40] Try start with 1 to 5% and you’ll see the difference.
Let us know how it has impacted your business and hope you guys are going profitably.
power of one worksheet