“I can’t raise prices – I’ll lose customers!”
Sound like someone you know? Or this one:
“I’m not worried about losing customers over price – my prices are just fine where they are.”
These viewpoints may appear completely opposite on the surface, one as pessimistic as Eeyore from Winnie-the-Pooh and the other confident to a fault, but they share something in common:
They’re both wrong.
If your goal is to optimize your business practices so that you can maximize your profits, undercharging and overcharging are equally disastrous. Armed with the right data, you can raise your prices in many instances and you should lower them in others.