Adjusting prices in response to economic changes can be essential for small to mid-sized businesses
After assessing the market at the end of 2022, we advised our client, an auto body shop, to raise their prices for 2023. They were at capacity in their current shop, but they weren't in a position to be able to move to a new shop, and their margins were slipping due to inflation...
By collaborating with them and using sensitivity analyses to assess the likely impact to their financials, we were able to give them the confidence to take action. The result of the change is that year-over-year so far their profits are up by 70%. This has made their business more sustainable (and enjoyable) and they're looking at expanding into a larger facility.
Price adjustments, when done right, can benefit both businesses and their customers, offering sustainable growth and improved service quality.