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This recommendation outlines the potential for price increases based on customer perceptions of product quality. A survey indicates that 15 out of 20 respondents believe the products offered are of high quality, suggesting the firm has successfully added value. By analyzing competitors' pricing, particularly with Company A's lower prices, there is significant opportunity for gradual price increases. However, it’s important to execute these increases carefully to avoid losing customers. A strategic, measured approach will help ensure sustained sales while improving profit margins.
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Exemplar Recommendation 1. Increasing prices As you can see from the table 1.1 quality, 15 out of the 20 people asked believed the quality of the products is high. This means that if customers believe the quality is high the firm has added value to the product therefore they can charge higher prices. This would lead to higher profit margin, therefore more profit. Also from my price comparison in appendix B, you can see that company A as lowest prices compared to its main competitors, therefore there is room to increase prices However, usually when you increase prices, some customers stop buying the product, so i recommend that only increases prices slowly and in a way that wont stop customers buying the products/services
