Session 24

INITIATING THE
PRICE INCREASES
Initiating price changes:

Circumstances under which price can be raised:

► When introduced some differentiation in the offering.

► When costs of doing business may have gone up.

► Excess demand and perception of quality.

► If a company’s objective may have become to harvest the

business i.e. To increase margins at the cost of survival.
► Customers will take the price charged by the major and majority
of companies as reasonable and will attribute the low prices of
the few companies to inadequate quality.
► If a company’s objective may have to harvest the business i.e. To
increase margins at the cost of survival.