Do you need to increase your prices or fees because of the current crisis? Not sure what to do? I’ve put these ideas together, to help you limit resistance to your price increase as much as possible.
Let’s go!
Honesty and openness
Customers are more understanding of a price rise when they hear specifics. For example, tell them your shipping costs have doubled and to maintain the same level of quality/service, you’re increasing prices by (whatever) percent.
Specifics cut to the point. The more real it feels, the fairer it sounds.
Give as much notice as possible
This is important on a number of levels.
- Short notice price increases give the impression your business is in trouble. This dents customer confidence.
- Even a couple of weeks’ notice can reduce customer resistance.
You may also find that the advance notice creates a short-term increase in sales. This can provide you with a very welcome improvement to your cash flow!
Reward your most loyal customers
This is the worst possible time to start losing your most valuable customers. Whenever possible, let your best customers keep their current price for a little longer.
A message like this goes a very long way.
‘We’re increasing our pricing, but as one of our most valued customers, we’re keeping your rate the same for the next 3-months’.
Being forced to increase your prices is never easy
There’s almost always a degree of pushback. That’s why it’s essential to focus on protecting your customer relationships. Once you know for sure that an increase is inevitable, take action.
It isn’t easy. But the longer you delay, the harder it gets.
On a personal note, I feel for everyone who’s struggling with the current crisis. I want you and your business to come out the other side of this better and stronger. Rest assured, I’m going to try and help you as much as possible.