It's where 40 years of experience as a CFO and business consultant becomes your essential business read.
Price increases are inevitable and all consumers know that, but they don't want to be treated like idiots. Keep your customers informed and they're more likely to accept without a fight.
In this article you'll discover:
You must explain to existing customers just why the price is going up. When people have information, they can turn the situation over in their own minds and come to the same conclusion as you – that you had to raise your prices.
They know what's going on in the world and they are realists. As consumers, none of us likes price hikes but they've become inevitable so we expect them.
Your customers are probably well aware of global and national price changes due to:
If these are relevant to your price increase, then say so. If there are other changes, if, for example, you want to provide a more ecologically responsible product, then the costs of this are higher.
People know that 'going green' costs more at present and many are prepared to pay the price.
Prepare your facts in advance so you can justify the price increase to your customer. This will help you if you are speaking to them or writing to them (see below).
Sure, they won't be exactly happy when they find out you are raising your prices, but if the message is delivered right, then they'll probably understand.
Even if they don't buy from you this time, you will have maintained your good relationship with them so they can soon come back!
Well, the 'letter' might be a letter or it might be an email or something else you write to tell your customers about your upcoming price increase. Whatever it is, what goes into communication is really important.
It needs to be:
What are some of your ideas? Let me know in the comment box below.
Geoff Vautier is an 80-20 guru and pricing specialist. He successfully helps businesses of all sizes to find ways to increase their profits and grow.
“Boost your profit: Understand, and charge for, the value you provide”
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