Sharing Daily Discoveries About Personal Finance And Business Topics

Raising or Lowering Prices During Peak Times

So it’s pretty much tax time around here as a lot of people are already trying to figure out how they will be submitting their taxes. Most people use some kind of tax software nowadays I’d say. One interesting observation I had was that some stores actually increased the price of the products because of the demand while others decreased it.

Basically there are two train of thoughts. The first one is since people are going to buy it you can make more profit in selling the items during these peak times. The second thought is that you want to attract the majority of the customers and therefore you make your price lower in an effort to do so. I personally think the best strategy is to go with the lower route.

Speaking from a consumer point of view, if I ever buy something because I need it and I know that the company sells it for more than it should be I would be apprehensive about buying from them in the future. As well, I think this is one of those situations where you should use it more as an opportunity to make some profit while attracting more people. If you are really good you will find ways to offer other products that this demographic would be interested in buying as well.

It’s better for the long term I think. The only time I can see that it is better to raise the price is if the item is extremely rare such as a collector’s item. But for general products and services it’s a good opportunity for everyone to remember your business.

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