Business boosted by expert talks
The head of a small business advisory service has encouraged Pilbara businesses to think about increasing prices to reflect the quality of goods and desired image.
Speaking at the Karratha and Districts Chamber of Commerce and Industry Business Bootcamp, Business Bakery founder Julia Bickerstaff said raising prices by just one per cent would go largely unnoticed but could make a significant difference to a businesses bottom line.
She said while businesses which sell widely available products could find it hard to put prices up, small operators should not be the same as anyone else.
“Every year every business should put their prices up,” she said.
“If you slash prices to make a difference because of the economy flattening, you take 20 to 30 per cent off.
“When you build it back up, you do 2 per cent now, 2 per cent at Christmas, 5 per cent next year.
“If we want small businesses to still be here, they have to charge enough to make money. It’s not about ripping people off, it’s about being paid fairly for what they do.”
Mrs Bickerstaff said a technique called anchoring, where a business shows customers a high price to start with before coming in with a lower price product, was an effective way to trick, to tap the consumers’ mind.
“We often don’t work as consumers in a rational way,” she said.
“Plant a seed of a number in some way, then come in with a lower price.”
Pilbara Development Commission chief executive Terry Hill said initiatives such as the boot camp would help rectify the under-representation of small businesses in the Pilbara.
“Developing a robust and diverse small business sector is a key pillar of the Pilbara Blueprint that will create a stronger regional economy,” he said.
Business Bakery founder Julia Bickerstaff.