Increasing prices, then putting everything on sale

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Increasing prices, then putting everything on sale

will this raise or lower our profits?

mona

6:19 pm on Oct 27, 2005 (gmt 0)

Hi, there. We recently put everything on our site on sale - 6% off for a week. Our sales doubled. However, our profits stayed the same since we cut into our profit margin.

Now we're thinking about raising our prices by 5% and having an ongoing sale of 5% off. We carry over two thousand products so this will take some work. Before we invest a considerable amount of time into this experiment, I was wondering if anyone has tried this and what were the results? Thx!

vincevincevince

6:38 pm on Oct 27, 2005 (gmt 0)

Do check the law in your country. Many countries (UK included) require things to have been sold at the higher price for a certain recent period of time by the same company.

sharbel

1:15 am on Oct 28, 2005 (gmt 0)

If your sales doubled, and you made the same profit I for one would keep it going. Every single person that buys will (hopefully) turn into a repeat customer. Customer aquisition IMHO is gold.. the more people in your customer list the better. That is, of course if your supply of widgets is strong and you can fulfill the increased order load :)

thewebboy

9:10 am on Oct 28, 2005 (gmt 0)

Your results sound similar to sites like amazon... cheaper prices and you make it up in increased volume.

mona

1:01 pm on Oct 28, 2005 (gmt 0)

The products we sell are more of a one time buy. But increasing volume over sales still makes sense, since these costumers are hopefully telling others about our site. That's something I didn't even consider, thanks for the insight!

etechsupport

6:03 pm on Oct 28, 2005 (gmt 0)

Implement value added service that will be obvious to raise your price by way of increasing value of your service in proportionate.

sun818

5:18 am on Oct 30, 2005 (gmt 0)

Raising or lowering prices is a great way to manage your current resource of labor and time. Lower your prices if you need more activity in the business. Raise your prices if you are overwhelmed. The added benefit of volume is that you can negotiate better pricing with suppliers and enroll in incentive programs with shippers. If you buy with credit cards that also means more reward points, cash rebates, free flights, etc for you.