Raising prices is never an easy thing to do. Despite most people understanding that prices have to be increased on a lot of items, from fuel and food to insurance and utilities, it remains a delicate task.
Here are a few tips on how to do it in a way that puts your company in a better financial position and not a worse one caused by an exodus of irritated customers.
Identify where your prices need to go
Once you’ve established the exact percentage of your price rises, there are two trains of thought: phase them in with smaller increments over a period of time or institute one larger price increase in one fell swoop. There are pros and cons to both methods.
Culture is crucial when it comes to understanding the needs and behaviours of an individual. Throughout his existence, an individual will be influenced by his family, his friends, his cultural environment or society that will “teach” him values, preferences as well as common behaviours to their own culture.
A recent study revealed that 26% of respondents would stop buying from a company if they were not happy with the delivery firm used. Losing business over a problem which is not caused by you is certainly the worst way for it to happen.
Social media has paved the way for companies to get closer to their customers. And while this has proven to be advantageous, it can also be disastrous if you do not know how to properly deal with angry customers who vent their ire, frustration and disappointment in social media.
Sometimes, bad publicity is inevitable. Even when you and your organisation behave responsibly, you always run the small risk of an unexpected PR disaster. In the information age, bad publicity can reach the masses before you can even mount a defense.
People say that business is all about relationships, but the truth is that business is really all about communication. Communication is key to virtually every aspect of business—from acquiring and retaining customers to improving employee engagement and performance. At the most fundamental level, business can’t happen without communication. This is even more true in the era of globalisation. As geographic borders become porous and the world flattens, effective communication with customers, employees, partners, suppliers, and other stakeholders across the globe becomes essential to successfully running a company.