The costs you incur to operate and manage a business changes from month-to-month and year-to-year. Yet, your pricing has to keep pace. The question is how do I adjust prices without losing a customer. How do I ensure that I cover my costs? Here are some ideas worth considering before you re-price your items or offerings.
Give Customers Fair Warning
In their article on adjusting pricing for inflation, the National Federation of Independent Businesses stresses the importance of updating major clients of pricing increases well before they actually happen. For a retail business or business with large amounts of customers, consider reaching out with email, store signage or even a newsletter. Your customers will be much more receptive to a price increase if you warn them well in advance.
Encourage Full Price Sales by Adding Value
Adding “extra perks” can help increase the value of a full price purchase especially for those customers who aren’t chasing discounts, according to Erika Napoletano in her article about adjusting prices on www.entrepreneur.com. You can entice customers to buy without discounting your product. A bonus consulting session or a little add-on are two of her suggestions. This article on raising and lowering prices notes that businesses often find increasing value, along with price, delivers the best kinds of results. So, consider adding something to the value proposition to justify that price increase and you may hear fewer complaints.
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