As consumers, many of us become unhappy if prices increase. Thus, we like discounted prices much more than higher ones. Last week, we asked “Do We ALL Want a Deal?” Today, we take a more company-oriented view. And we focus on a sensitive topic – raising prices. What should firms accomplish to successfully raise prices?
So, is there any way for firms to raise prices without upsetting shoppers?
A Company-Oriented View to a Sensitive Topic – Raising Prices
Depending on your market and industry, there are many factors involved in having to raise your prices. Whether the reason for a price increase is cost inflation, anticipatory pricing, or over demand, you should have a strategic plan behind how and when you raise your rates.
To grow your business means to expand your customer base and improve your customer lifetime value, both of which involve your price as the main factor. It’s a necessary step in order to evolve as a business and become more profitable. Raising your rates is also a great opportunity to justify the price hike by improving the value of your services and products for your customers.
For specific examples of how to raise your prices, check out the infographic below by Valpak. They offer twelve steps to raise your prices with added tips on how to best communicate the increase to your clients. You may find that raising your prices isn’t as daunting or complicated as it has to be.
Dear readers, what do think think about these tips? As a shopper? And as a company marketer?