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The Los Angeles Times - Business Experiment with effect of pricing Dear Karen: Will my sales decline if I raise prices in this economy? Answer: You won't know for sure unless you try, said David Cochran, vice president of operations at QualPro, a consulting firm. "Increase prices on small customer segments, varying the amount of the increase, and measure the impact on sales. You can then determine what your optimum price is," he said. Despite popular belief, pricing is not always the most important factor affecting sales. "Often, the right advertising message can overcome the effects of raising prices and you can sell just as much product or even more at higher margins," Cochran said. "While lower prices often do increase unit sales, the use of aggressive wording such as 'Great price!' in your advertising may be equally effective. The fact that the price may be higher than a price you've offered previously may not matter a lot," he said. Request a reprint of the entire article. |
Since 1982, QualPro has used Multivariable Testing (MVT®) with 1000+ companies to test 100,000+ improvement ideas. MVT® tests between 20 and 40 ideas simultaneously, accurately predicting the bottom-line impact of potential process changes in as short as 12 weeks. Take existing process initiatives, like Six Sigma, to a whole new level. All process improvement tools and approaches (TQM, DOE, Six Sigma, Re-Engineering, SPC) can be enhanced through the use of Multivariable Testing® by QualPro.
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