Just a little conundrum for my 400th post (Although I readily admit I've a way to go before i catch up with Windbag_Toshstow!)
From time to time you will read a post that says that if you increase your prices by 20% you'll lose 20% of your customers and get the same money for 20% less work. I've even noticed this being applied to a 50% increase equalling 50% less customers and thus 50% less work for the same money.
A word of warning - as the percentage increases the effects are dramatic as per below:-
Imagine 10 houses at £10 = £100 of work
Put prices up by 20% = £120 of work @ £12 per house
Lose 20% of customers = 8 houses @ £12 = £96 of work left
Now Imagine the same with 50% applied
Prices up by 50% = £150 @ £15 per house
Lose 50% of customers = 5 houses @ £15 = £75 of work left
Finally Prices up by 100% = £200 @ £20 per house
Lose 100% of customers - 0 houses @ £20 = £0! No work left!
Just the maths chaps - but the moral is Twenty is Plenty! Fifty is Nifty!(but you'll need some more houses at the new rate!) and a Hundred means you've overdone it!
