It feels as though everything is more expensive now. Inflation impacts all corners of life – food, fuel, household supplies, electricity, insurance, medicine, clothing, transport, and business. Including your business’s.
On top of that, there have been major economic and cultural shifts in the way people think, live, work, and spend.
With inflation and cost of living pressures, it’s time to take a good, hard look at your numbers. It can feel counterintuitive to increase your pricing when spending is tight and people are in cash-preservation mode, but it might be critical for business’s survival, let alone it’s longevity.
First, communicate your rationale internally.
Create a sense of confidence within your team and let it permeate out. It’s your people who will be serving your clients, so develop that collective buy-in internally first. This is also an opportunity to test the response, explore questions you hadn’t thought about, before putting forward a firm position to clients.
Be transparent & create safety.
In challenging climates we humans require safety and comfort. By being transparent and upfront about your price increase, you’ll promote a deeper level of trust. People expect prices to go up incrementally, especially in business. Use your insights and best judgement to decide if you want to include your rationale.
“We’re raising our prices in line with inflation” usually validates the increase, but you might like to test the approach with the clients you have a close relationship with. However you communicate it, focus on creating feelings of safety and security.
Give your clients a runway of time.
It’s best practice to give your clients time in between the announcement and when your price rise comes into effect.
Depending on the percentage of the increase, some clients will need to make arrangements to be able to continue with you or find alternative support. Respect your clients by allowing the space for them to ask questions, express their feelings, and make changes.
Add value. Add service. Just, do what you say.
Price and value are both subjective. What might be expensive for one client is affordable for another. What you can control is the value you deliver. Take this time to understand your clients’ deepest problems, frustrations, and desires. When you provide great value, your price is less relevant.
Business is about relationships. Make your customer service just as good as the service or product you offer. Customer service isn’t a department or a role. It’s a philosophy, a feeling. This is why it’s so important to announce price changes to your team before your customers. You want the entire team to embrace, understand and champion the change.
Bean-counters and beautiful business builders.
At Altitude, we’re the least accountant-like accountants. Yes, we’re into numbers. We nerd out over them. But, we’re about creating beautiful business numbers. The kind of numbers that help you do better work for clients, support a team of dedicated people, and reach your life goals.
This is about so much more than just raising your prices.
Get in touch for a free, no-obligation consult for advice on how we can help you achieve your goals.