Most of the entrepreneurs who are just starting out, think that quoting a low price tag can help in attracting more people to their products/service. Although, the statement is not completely false but sometimes this tactic can result in low profits and increased overhead cost. They rise their prices only when they realize that near bankruptcy. So as not to experience the same, here are some of the basic ways to increase prices and earn profits that you truly deserve in the process.

• Range – It is one of the first things that you must consider. You must know the buying power of your potential
  customers and the amount of sales that you would like to make, before deciding the price increase. It is important that the customers should not feel overcharged in the process.
• Inform – Your customers should be informed about the price increase before you apply them so that they don't get shocked. A simple mail or a call is enough to inform them about the price hike. Don't forget to explain the reason behind the change.
• Value Added – To soften the blow of price increase you can offer clients with value added products and services. Faster delivery, improved customer service, freebies are some of the value added services.