If the price of raw material goes up for you, chances are it went up for your competitors as well. When the cost of goods goes up, you have to raise prices in order to maintain your gross margin. When you decide to raise prices is key. You may be able to delay a price increase by waiting to see if the reason for the cost increase goes away.
You don’t want to flinch every time costs go up, but when they go up and stay up, then you have to raise prices. Whether it’s tariffs or anything else for that matter, you have to ask yourself if it’s going up just for you or is it going up for your competition as well.
Shops ought to focus on the value of the product rather than the cost. An example is a unique piece of art as an award; it may not cost that much more to produce but the value is much higher in the eyes of the recipient. Measure the value of the award or item against the cost to produce it when determining the price.
—Vince DiCecco, Your Personal Business Trainer