understand what the consumer is prepared to pay Recent research found that 60% of retailers view higher margins as a top priority. This may not be surprising for retailers, or perhaps any business, given how tight margins are in 2018 and the direct relationship between margins and profitability. The question remains, however, how do businesses […]

understand what the consumer is prepared to pay Recent research found that 60% of retailers view higher margins as a top priority. This may not be surprising for retailers, or perhaps any business, given how tight margins are in 2018 and the direct relationship between margins and profitability. The question remains, however, how do businesses increase their margins? One option is to cut costs and another is to increase prices. This is the first of five thoughts addressing the latter. A great deal has been written about just how difficult it is to set the optimal price for any good or service. In the first instance, at least, there is often an element of guesswork. To minimise the level of guesswork, it is advantageous to understand who the target market is, what they expect to pay and the basis for that expectation, what they are willing to pay and the…