When a larger, global company raises their prices, people are typically on either side of the fence. They either don’t mind because the increase is usually minimal while others vow they will no longer do business with that company. What does this mean for businesses that don’t have offices around the globe but rely on their community in order to thrive? How do you raise your prices without losing business?
5 Ways to Increase Prices without Losing Business
1. Make gradual increases: Depending on your industry, products, or services you might be able to increase prices for a certain period of time for new customers or clients while offering a “discounted price” for your longtime customers. However, give them a grace period and have them understand that the discount isn’t forever.
2. Timing: Much like location; timing is key. If you’ve encountered a large amount of customer complaints or suffered from a review that painted your business in a negative light, consider waiting to increase prices. Doing so at that moment will continue to shed a negative light on your business. Instead, rebound with your customers and gain their trust back. Then, once you have reestablished your business with them, start the process gradually.
3. Make eliminations: While this option won’t feel like you’re raising prices, you are creating the same effect for your business. Each business is bound to have a product or service that offer a lot of room for profit. Unless it’s something that always gets people in the door, or if it has a high profit margin, consider eliminating it. This could be done for a period of time as a trial to see how it impacts the business, if you find that it’s a negative impact, you should consider taking a different route.
4. `A la carte items: Many businesses offer add on items which allows for an increase in sales without raising the price of a product or service. Businesses with electronic equipment tend to offer extended warranties; this in turn increases the overall price of the transaction without increasing the price of the product.
5. Be up front: We’ve been told from an early age that honesty is the best policy; this adage still holds true for businesses and their customers. Depending on your industry, products or services, a price increase can be easily explained. Retail shops who only sell products from ethical companies with higher standards for their own employees can easily explain the cost of products and services. Transparency can go a long way when it comes to your customers.
If your business is growing to the point where you’ve begun to run out of space, don’t let that impact your business. Finding a space that is better suitable for your business can help it flourish. Rosetti Properties has approximately 500,000 square feet of commercial space throughout Albany County and the Capital Region. Spaces from retail to commercial offices are centrally located in the area and your customers will find them easy to access. We also pride ourselves in being able to alter the office space to fit the specific needs of your business! Contact us today to schedule a tour of your next business space!