Raising The Price Of Your Product Or Service - Deepstash

Raising The Price Of Your Product Or Service

  • Normally products keep getting costlier or the per-unit quantity keeps shrinking to offset the rising material costs and shortages. 
  • Communicating the unwanted and unwelcome news of a price increase isn’t simple, especially if there is no indirect, below-the-radar option available.
  • Products and services in contractual or subscription models can risk customer complaints, outrage or boycotting of business if the communication of a price increase is faulty.

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MORE IDEAS FROM THEARTICLE

  1. Be transparent and call a spade a spade, using the term ‘price increase’ in your communication, instead of beating around the bush and using an excuse of a word.
  2. Explain the real, honest reason for the price increase in a clear manner.
  3. Provide a compelling story, a narrative that justifies an increase in price while highlighting the new benefits and value to the customer.

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RELATED IDEAS

Realize That Some Inflation Is Not a Bad Thing

Brands and brand managers must learn to embrace the more inflationary environment.

Inflation gives you the flexibility to do a lot of things. 

It’s not particularly fun to brainstorm ways to cut back your marketing budget year after year. It’s far more invigorating to consider an environment where you have more money to play with and a broader set of tools at your disposal for continuing to grow your brand.

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A good customer experience is essential

Competition for brand recognition is fierce. While digital-native newcomers with their tech-savvy, direct-to-consumer approaches enter with ease, the traditional retailers are struggling.

A big part of the problem is the inability to connect with customers. One PwC consumer survey showed 73 per cent of respondents valued customer experience. The same survey showed that consumers are willing to pay up to 16 percent price premium for a superior experience.

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Good Pricing Strategy.

Pricing strategy helps you determine the price point at which you can maximize profits on sales of your products or services. Factors to be considered includes:

Costs: Overheads, production and distribution.

Competitors: Offerings and positioning strategies.

Customer: Target customer profile.

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