What to expect when you increase prices
A price increase can raise profits considerably but can also make the clients unsatisfied. A major circumstance provoking price increases is cost inflation. Companies often raise their prices by more than the cost increase, in anticipation of further inflation or government price controls. Another factor leading to price increases is overdemand. When a company cannot supply all its customers, it can raise its prices, ration supplies, or both. Each of these has…