New business owners - pricing power
I have a small business and I have used this mantra or formula to my advantage.....may be other small business owners can also look into it..
For any business owners out there and others who want yo get into the world of entrepreneurship, please remember this mantra...or understand this mantra (your apartment owner uses it in major cities, coca cola does, Gillette shaving kits they do and many others)....do.....Toll bridge they do and so on...
Even in small businesses this mantra is highly effective at the right location....
The single most important decision in evaluating a business is pricing power,” Buffett told the Financial Crisis Inquiry Commission in an interview released by the panel last week. “If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. And if you have to have a prayer session before raising the price by 10 percent, then you’ve got a terrible business.”
http://www.pros.com/about-pros/news/buffett-says-pricing-power-more-important-good-management/
Whatever I sold in 2013, I still sell the same thing...the only difference is..mprices are up 60 per cent since 2013...and well....i am happy too.....in the next 10 years....i am going to raise the price even more...simply because..i can....and to run a very profitable business you don't need to know good English, you don't need to be educated in saint Xavier or budanikanth or any hifi..schools...all you need is a good product or service in a location that needs it.....and making a good living from a successful small business is not a big deal...in fact you may find these well educated flurnt english people wanting to work for you...it happens..as they too need to pay bills before they find their dream jobs etc...all in all...owning a small business at the right location can make your life easy too but make sure you understand the formula..if you can't raise the price by 10 percent because of the threat of customers running away to your nearest competitor...find something else or some other place...where you have something that others done...i know ..it is easy say than done..
Last edited: 20-Nov-17 02:43 PM
What kind of business do you have?
Ice cream shop in front of a major high school in a biv city (west coast)
Nice! Name (if possible)?
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