The concept of if and how a company can raise prices is a complex one, and of course needs to be determined on a company-by-company basis.
Often it is assumed that end-users are extremely price-sensitive and therefore no possibilities exist to raise prices. However, this assumption may – in many cases – be mistaken.
Along these lines, MarketingCharts.com posted the results of a recent survey concerning pricing. The October 25 post is titled “Almost Half of Americans Claim They Would Switch Brands – And Spend More – For Higher Quality.” An excerpt:
47% of Americans agree (top-2 box score on a 5-point scale) that they would switch brands for one they believe is higher quality, even if the price is higher, according toresults of an online survey released by Ipsos OTX. American respondents appear slightly more likely than the average global respondent across the 25 countries tracked to prioritize quality over price. As can be expected, there are some significant differences when looking at the demographic breakdowns, some more surprising than others.
The post also contains a chart and discussion of how the results vary among demographic segments.
Due to the overall economic environment, as well as intensifying competition and pricing pressures in many segments, determining if and how prices can be increased – or at least maintained – likely is or will soon become imperative for many companies.
StratX, LLC (stratxllc.com) is a management consulting firm and strategic advisory that focuses on the analysis of current and future business conditions, and given these conditions, offers corporations and businesses advice, strategies, and actionable methods on how to optimally increase revenues and profitability.