Increase the selling price

Cards (3)

  • Why might increasing the selling price lead to profitability
    Maximises value extracted from customers
    no need for extra production capacity
  • What will increase the selling price depend on
    Price elasticity of demand
    Would work if customers remain loyal and perceive product to be good value
  • Why might increase the selling price not work
    Competitors are likely to respond
    customers may decide to switch to competitors