As costs for products and materials continue to increase and as wages climb to all-time highs, you may be forced to increase your prices just to keep up. You are not alone though as your competitors are likely having to do the same. So what does that mean for your customers? Are you at risk of losing your customers as the cost of goods increases and budgets tighten? How can you increase your prices and keep your customers?
Prices are increasing everywhere, and you may have no choice but to increase yours to stay profitable. Setting the right prices to stay profitable and balancing customer retention can be very difficult these days. However, making sure you have enough resources to provide great quality products and outstanding customer service will set you up for success. If you get your pricing strategy right and improve customer service and retention you can expect an increase in revenue and profitability.
Make sure not to focus your strategy on price—selling on price alone is short term thinking; Instead, focus your strategy on the value your products and services deliver. This will establish long term loyalty and profitable gains.
Here’s how…
Gather customer feedback on a regular basis…
The goal is to ensure your customers are consistently satisfied with your products and services. Given current conditions, things can change quickly so making sure you know each customers’ status, will give you confidence in these relationships.
Use the insight to strengthen the relationship…
If there are issues, make sure that you are working to communicate and rectify things quickly. It’s also an opportunity to better position your products and services to further cure any other needs or pain points they may have.
Solidify the partnership through delivered value…
The more benefits and solutions you can provide your customers, the greater they will rely on you to solve their problems. If the customer receives a great deal of benefit or value, the more difficult it will be for competitors to lure them away.
Value is the difference between the price you charge and the benefits the customer receives– if you focus on value, price becomes less and less important.
Consider these Customer Acceleration tips that will help you make more money from your customers and make them happier in the process!
If you’d like some help, please reach out at (216-876-1165) I’m happy to help you get started.
