Given an ideal situation, an investor is there to earn money, and one way of doing it is to increase prices. In the current economic scenario, following such a strategy comes with the risk of losing customers. Whether you want to raise prices to increase profits or to cover the costs of production, you have to make sure your market share does not shrink as a result of this move.
When raising prices, apart from knowing the number that’ll cover up the losses, the following points should aid you in retaining your customers while raising prices effectively.
Be Honest!
If everything possible has already been done to manage rising costs internally, then communication with customers will help them understand the reason that compelled such an action. Be truthful and direct in helping customers, and stay well-informed while also remaining cautious that it doesn’t harm your business.
Be Fair!
If you raise your prices regularly, you would definitely lose customers. People are likely to be more agreeable and accept the new prices if they believe they are justified. Some clear, quantifiable data will be enough to justify it for the time that it’s going to stay.
Maintain Your Rapport
If your business includes customer services and is based on one-to-one interaction, then your loyal customers will seek discounts on existing prices. Be open to a phone call or meeting to personally discuss it with them and adapt to their reactions accordingly.
Check Your Market
Although it does not guarantee saving clients from being alienated, the price rate in the industrial market can allow changes and raising prices, as the consumer will already be aware of the current trends and market rates.
Have an Option Available
One technique that never fails to disappoint is offering them new products along with the previous version just because the customers value it. They are pleased about having the option of upgrading when they feel like it.
No Compromises in Quality
The best products can demand first-class charges. In spite of price hikes, many customers tend to stay and go a long way with a particular company if it retains its superior quality that keeps it apart from the rest and that has satisfied them before as well.
Publicizing It in Advance
When companies begin charging for facilities and services that used to be free, the way they deliver the message can have a strong impact on their customers. If the owners in charge of the situation can notify the public early on, then they’ll benefit from the easy transition their customers make.
What’s more, companies nowadays are taking measures to get their customers involved in the price changing event. Planning a count-down instills in them a sense of excitement rather than frustration and anger.
Offer Incentives
Acknowledging customer loyalty by offering incentives such as subscription memberships, discounts on various occasions and referral programs let them be part of the team and to pay the original price only. Multiple tiers and bundle products, too, make them consider it and reduce alienation from the respective industry.
Feel free to share your views and experiences on this matter.
