![]() It’s important to reflect this in your pricing as otherwise your business could quickly become unprofitable. Supply shortages in the trades have been pushing prices up since the beginning of the pandemic and many businesses are feeling the squeeze. One tradesperson based in south east England told us: “I really need to put my prices up to cover costs, but I’m too concerned about losing customers to attempt it yet.” If you have loyal customers who regularly buy the same product or use your service, then it can be difficult to know how to approach a price increase. ‘I’m too concerned about losing customers’ However if your customer churn rate is high, you’ll be losing a lot of existing customers each month which could lead to financial problems. Do it at the wrong time and you could risk losing customers, which is known as ‘customer churn.’Īll businesses experience churn. When customers are happy with your products or services then they’ll be more likely to respond well to a small jump in prices. Small businesses shouldn’t be afraid to put their prices up in line with their own costs, but they have to do it at the right time.” The email used empathy to let customers know: "We understand that any price increases are not good news, but we have delayed and minimised these changes for as long as we could."Īdam Cozens shared his approach to price increases at his specialty coffee shop, Perky Blenders: “When we put our prices up, our customer base were understanding. The BBC reported on the email McDonald’s sent to customers explaining the “tough choices” they’re having to make as a result of soaring costs. ![]() ![]() McDonald’s UK recently made newspaper headlines as the fast food giant raised the price of a cheeseburger for the first time in 14 years. If you’re able to introduce a gradual price increase over time then that can help bring customers along with you. It’s important to manage when, and how much, you increase your prices. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |