Margin Magic: Four Steps to Building Greater Profit

For example, if the price of an item currently is $27.99 and the item is performing very well, chances are you won’t decrease response much by adding $2, and you’ll realize a 7 percent increase in revenue for every item sold.

Additionally, be sure your price endings are maximized for your brand strategy. In other words, if yours is an upscale brand and you’ve ended your prices at 50 cents, you might want to try 75 cents. Or if you have a value-price strategy and are at 95 cents for price endings, go up to 99 cents.