Perhaps You Should Raise Prices

By Lawrence Walsh  |  Posted 2009-04-14 Print this article Print

The economy hasn't completely obliterated the rules of supply-side economics. You can raise the price of IT goods and services if you know where your product is the supply-demand equation.

The economy is showing signs of relative stability. The stock market is no longer going through wild swings. Banks are beginning to lend (at least a little). And the government is no longer talking about economic doomsday scenarios.

While that all sounds good, it doesn't mean the recession is over. Analysts and economists say true economic recovery will not happen for another year, and even then it will be late 2010 before the average small to midsize business starts to feel the economic turnaround.

In the Channel Insider 2009 Market Pulse Report, solution providers said that their customers were cutting back on IT spending. Many end users were taking longer to act on IT projects or deferring work to avoid payments. Thirty-eight percent of surveyed solution providers said that their customers were demanding lower prices for products and services.

Business-technology consumers remain frugal about their IT investments and demand the best, most aggressive prices. But that doesn't mean you have to give it to them. Supply-side economics, in which higher demand and lower availability equals higher prices, still applies no matter the economic climate.

>> Click here for the forumula for raising prices

Lawrence Walsh Lawrence Walsh is editor of Baseline magazine, overseeing print and online editorial content and the strategic direction of the publication. He is also a regular columnist for Ziff Davis Enterprise's Channel Insider. Mr. Walsh is well versed in IT technology and issues, and he is an expert in IT security technologies and policies, managed services, business intelligence software and IT reseller channels. An award-winning journalist, Mr. Walsh has served as editor of CMP Technology's VARBusiness and GovernmentVAR magazines, and TechTarget's Information Security magazine. He has written hundreds of articles, analyses and commentaries on the development of reseller businesses, the IT marketplace and managed services, as well as information security policy, strategy and technology. Prior to his magazine career, Mr. Walsh was a newspaper editor and reporter, having held editorial positions at the Boston Globe, MetroWest Daily News, Brockton Enterprise and Community Newspaper Company.

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