Speaking of strengthening cash flow, you may at first dismiss this one—raise your prices. So afraid of running off customers, some small to mid-size business owners haven’t raised their prices in years. In all the clients we’ve coached, not one received a complaint when they raised their price!
We asked one restaurant owner what item she sold the most of. She replied, “burgers.” We asked how many she sold. “200 a week,” she said. She’d been charging $5.95 since 2007 so we suggested for 1 month she raise the price to $6.75. She
still sold 200 burgers and the $.80 increase made an additional $640 in the 1st month and $3840 in six months. Six months later she raised the price to $7.29. Selling 200 burgers/week at $1.34 more per burger over the next 6 months resulted in $6432 additional income. That’s a total of $10,272 additional income in the 1st year. Just think how much additional income she’ll make if she raises the price on 10 items, or 20, etc.
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