61 414 799 515 will@cashcopy.com.au

It sounds weird but as price goes up so does demand.

It’s called a Veblen Good.

It defies the rationality of economics, which assumes as prices go up demand will go down.

No alt text provided for this image

But that’s the great thing about business we’re dealing with people and people are wonderfully irrational.

Price is a quality signal.

But more importantly it’s a status signal.

If everyone can afford the thing, then it can lose appeal.

You may not be selling a Veblen Good or Veblen Service, but you can apply the principle.

Raise your prices to the highest level you can. The market will quickly tell if you go too high.

In my experience pretty much anyone can raise prices by at least 10% without losing many clients.

You will probably find that the clients you really want or drawn towards you more. And the ones that are hard work will go elsewhere.

At the end you’re left with a better business that is more fun to run.