5 simple and effective ways to raise prices
Each entrepreneur can confidently say that raising prices is a morally difficult and unpleasant occupation. Everyone is afraid to scare customers, lose profits, etc.
But in a crisis, revising prices is not a whim, but a necessary measure. The main thing is to conduct it competently, then the buyers will remain, and the profit will remain, and even if some of the buyers are eliminated, new, more profitable partners will definitely come in their place.
The last few months have become a serious test for domestic businessmen – the high level of inflation has undermined the pricing of the vast majority of entrepreneurs. If, first of all, those who were associated with foreign partners in matters of purchasing ingredients and consumables reacted to the jump in the dollar exchange rate, then completely domestic producers who did not want to make big profits due to a significant increase in prices for all other goods pulled themselves up . The process has become a closed cycle and has become irreversible.
Ten easy and effective ways to raise prices
If you thought about raising prices all the time, but did not dare, then now is the time to start acting.
Option one. Talk honestly with customers
Find a way to tell your customers that raising prices is a necessary measure and the only way to keep the business afloat. How you bring this information to your partners does not matter.
Choose the method that is most convenient for you and your business: you can post information on the main page of your site, contact customers through a group on a social network, you can do newsletters by e-mail, etc.
It is worth emphasizing that the price increase is a necessary measure and allows you to maintain the quality of the services provided at the proper level.
Option Two. Raise prices in stages
Practice proves that the vast majority of people do not pay attention to price increases if the increase is 5-10%. Raising prices is better with a break of 1.5-2 months. This figure is fully correlated with the attitude of customers in times of crisis, and even such a slight increase in prices can increase the profits of the enterprise, if the assortment of goods is large.
If monthly sales are “piecewise” and only 30-50 goods or services are sold per month, then you should not stretch the price increase by several stages. It is better to raise prices one-time, immediately by 30-40%, thus, although the number of sales will decrease, the profit will still grow.
In addition, a significant price increase will significantly reduce the costs associated with the delivery, storage and warranty service of goods.
The third option. Raise prices selectively
To attract buyers, raise prices selectively. Some price tags can be left unchanged, and some can even be lowered. Such a move will help to attract the attention of customers, it is for these positions that customers will come to you, and at the same time they will buy more expensive products.
When you begin to communicate with customers about price increases, you should pay attention to the fact that some products have remained in the same price range. For even more emphasis, a separate catalog should be made for customers with goods that have retained their prices.
Another benefit of selective price increases is the ability to track how company profits change with price changes. Testing results are better to save and apply in the future.
Another move that can be made is to increase the price of the most expensive product. It is necessary to give the product the status of a VIP product, which will attract a monetary audience. Most likely, VIP clients will not have questions about the price increase, which means that each sale will bring maximum benefit and profit.
The fourth option. Arrange promotions
Of course, you, as a seller, cannot afford to sell products to customers cheaper than you purchased them yourself. But you can completely sell the goods in sets – then the profit from the sale of one of the products will fully compensate for the loss from the sale of the other goods in the set.
The fifth option. Improve staff skills
The crisis is the time to think about which of the employees works 100%, and who simply takes a place in the state and spends the money the company has earned. The closer you look at your employees, the better you will be able to select the most valuable employees: they will be able to convince buyers of the need to make a purchase and will not spend extra money on themselves.
If even the best managers do not cope with sales, then a series of trainings should be conducted, the vocabulary of employees should be improved, the ability to work with objections, etc. Such events quickly bring the desired result.