Like many of you, our listener Brian Williams is grappling with the additional costs of doing business in our era of sustained inflation. He and his colleagues are in a pickle, and they asked for our help. Williams and the company wondered if they should raise prices or add additional fees to cover it. Since I am sure many of you have been wondering along the same lines, I wanted to share what we discussed about this business problem here, too.
In Williams’ case, some of the indecision stems from the fact that the competition hasn’t raised prices. So, if they were to raise them, Williams has concerns that they will no longer be competitive. The additional fees, however, would generate more revenue to balance additional costs while allowing them to maintain their current price point, and their competitiveness, ostensibly.
However, people are not huge fans of additional fees. So, naturally, they are concerned about this course of action, too. It’s been a debate for them, so they implored my podcast partner and me to help them.
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