We all know that if we sell our goods or services for more than they cost then we make a profit, right ?

If we want to increase our profits we try and keep our costs low and increase our sales. So far so good ?

But when you think about increasing sales, is the first thing you think about selling more, or increasing the price ? We find that most of our clients initial thought is about selling more goods or services.

Selling more of your services or products, generally means more cash tied up in stock or WIP, more customers and maybe more employees, and so it should be part of your ongoing business strategy. You don't want to expand too quickly and run out of cash, so if this is your strategy, then you should have a good business plan which includes a detailed cashflow forecast that you regularly review, to make sure that you don't.

On the other hand if you could put your prices up by just 5% (or don't discount your current prices), and, you turnover £500,000 then you can potentially increase profits by £25,000, with limited additional work.

Increasing your prices can be daunting, and there are many things to think about when considering pricing but here are our top 3 ......................