Raising Prices Gracefully

If you haven’t already done so, you may soon be forced to increase your pricing on your products and services. The questions you may be asking yourself are, when is the right time to implement the increases and how do we do it gracefully so that we don’t lose customers.

As inflation continues, one of the main topics you will read about in the business trades is the rising prices of both products and services.  A past headline in the Wall Street Journal was this: U.S. Companies Bet Shoppers Will Keep Paying Higher Prices.  But there’s a catch. The article further states, “Price increases so far have paid off for makers of household staples as shoppers, particularly in the U.S. and Western Europe, have remained loyal to big-name brands”.

The keyword in that statement is “brands”. People do business with people they trust, and they purchase products that they trust! If they don’t know you, the chance of them choosing your business decreases, dramatically!

Have you ever noticed within your company that people who “like” you and “trust” you rarely ask about the price? Whereas the customers or potential customers that you have not yet built a relationship with will inquire about pricing significantly more often.

Raising or increasing prices is a struggle for every business owner. The thought of even having to deal with questions from customers about “why” can be exhausting. However, as the cost of goods increases, along with salaries and wages, rent, and all other related cost-of-business increases, so must your cost of goods or services.

The longer inflation persists the more apt people are to consider looking for lower-priced items or services. The trick to raising prices without losing customers is having a well-thought-out strategy and plan.

Tip #5 of our Tips to Raising Your Prices Without Losing Customers is Don’t Promote It. Even your best and most loyal customers don’t want to hear that you’re increasing the price of your goods or services. But (there is always a “but”), if you must notify your customers, do it quickly, in as few words as possible, and don’t apologize!

Because some of your customers are transactional rather than relational, even the best-run businesses will lose some customers when they increase prices. However, as your competitors are forced to increase their prices, you too will have an opportunity to gain some new customers as well.

In today’s business climate, raising prices is a must just to stay even, much less survive. Increasing your prices must be done with careful thought. If you would like some tips on how to approach raising your prices without losing customers, click here.