1) Are you working harder for less profit?
Answer: Most businesses lower price to increase the amount of customers that visit their store. This may feel like your business is growing but in fact your are just working harder for less money (profit). Set your business gross profit margins correctly and attract customer's by adding value or additional services that the competition does not offer. Always remember customer's that come to your store for the lowest price are not loyal customer's, if the price is lower at another store they will shop there.
WOW your customer's with service and trust!
2) How can I increase my income and profit quickly and efficiently without having a high attrition rate.
Answer: Most customers will not notice a gradual increase in rates on their services or products. If we increased our prices by slightly on each transaction the majority of customers will not notice this increase.
3) How can I make more profit by increasing price when my customer's are price driven?
Answer: Most customer's are value driven and not price driven. Customer's look for the best possible deal available for product quality, service, and convenience. The lowest price is not always chosen if the services and products are marketed properly.
Please review your sales and gross profit monthly, this is the best way to tweak pricing when required. Try to avoid major increases that may be noticed by your customer's.
Here is a little exercise for you:
Transactions for last fiscal year X $1.00
How much extra gross profit could you have made?