How to Navigate a Price Increase and Still Make Customers Happy

Running a business is not easy, especially when you are going to make tough decisions that would make or break it. One of these dreadful situations is adjusting your prices, specifically increasing them.

There are times when the cost of making your products rises, forcing you to increase it as well. Increasing your prices might dissuade customers, which is not ideal for your business.

Finding the right balance between keeping your business alive and your customers happy is a challenge when implementing a price increase. Don’t worry. Here are some tips to help you navigate this dilemma.

Know if a Price Increase is Really Needed

Checking the prices of the ingredients or materials needed to make your products is one way to know if a price increase is required. Assess if the cost of making the product and the actual price of it would still earn you profit. If the current price is not enough to make a profit, adjust your price so that it will not be high enough to disappoint customers.

Have an Open Communication with Your Customers

Your customers are an essential asset to your business. Communicate your intention for a price increase and make them understand the current business situation.

Make Your Increase Gradual

Don’t make a sudden price jolt. Instead, gradually increase your prices over time.

Add Value to Your Product

Justify your price increase by increasing the value of your product. Make your customers get something more out of your product. This may sound counterintuitive, but you can still do it. Add a little extra to your product or service to help soften the blow of a price increase.

Listen to Your Customer’s Feedback

Your price increase might not be received well from customers. Be ready to listen to their feedback and adjust accordingly.

A price increase is a hard thing to do but is essential to make the business stay afloat. Approach a price increase with a heart for your customers. Keeping customers happy and your business healthy is your goal. (ASC)