It’s a cycle. Small business owners have to change their pricing strategy every time they face an increase in expenditure costs. The rising expenditure costs are due to the economic crunch and financial crisis in the country.
Raising prices of your small business products or services can be a nerve-racking process. Price hikes can definitely offend a frugal customer. But on the other hand with the rise in prices of operative material small business owners are forced to increase them.
Many customers are accustomed to bargaining, and with prices rising everywhere they become even more prudent while purchasing products. They resist paying higher prices which makes it even more difficult for small business owners to earn steady cash.
Before you take your customer by surprise, you need to create a communication strategy in order to change and implement your pricing strategy without losing any sales.
Let Customers Know Weeks Before
If prices increase unexpectedly, then the customers are most likely to get offended. Announce increase in prices weeks before you plan to implement them. Instead of taking the customer by surprise you should always leave a note explaining your economic reasons for changing your price strategy. Also offer them deals. Offer discounts and coupons; create deals for them before you raise any price. Offer them a chance to buy in stock, where they can save their money.
Offer Valuable Discounts
If you don’t want your loyal customers to change their services provider then you should also remain loyal to them. Create a discounted membership cards for them, because loyal customers are the actual bread and butter of your business. You can also offer them free/discounted deals on every purchase. Many companies offer competitive products, with so many options available in the market, you have to maintain your pricing strategy in such a way that your loyal customers remain with you and buy your product.
Revamp Old Products or Services
If you plan to Increase prices of old products then you should add attractive features to your product or service and promote it through the new additions. You can also add a set of products together and sell it. As companies re brand themselves, in a similar way you need to revamp your product. In a constructive way you will raise the price and make your customers happy.
Introduce Unique Affordable Products
Add new products to your store which are not easily available in the market. Customers compare prices all the time. Create incomparable products and sell them. Create that, which your competitors don’t. You need to create products which are not available in the market and those which offer possible solutions. Products that are better than what your competitors have to offer. Unique, useful and quality are characteristics on which none compromise.