Date:15 August 2012
How To Raise Prices Successfully
Retailers and manufacturers face a backlash from shoppers and the media when they raise prices. Here are three points to bear in mind when doing so.
Businesses cannot afford to have any negative publicity in today's economic climate. However, firms need to grow profit margins and increasing prices is one way of doing this. So how can companies manage to raise prices successfully?
Put yourself in your customer's shoes
Think of what factors influence your customer in their willingness to pay more for your goods. Spending habits change from month to month; raising prices over the holiday period will eat into their allocated budget for this time. Pick the best time to raise your prices. If demand is rising for your product, it is a good time to raise prices.
Carry out market research
Select a small selection of your customers to try out the new prices on and see how they react. Make sure the ones selected represent your customer base as much as possible. Record how they react to the price increases. If you can selectively offer them varying prices, you will get the best results.
Aim for transparency
You will find that your customers will be more receptive to your price plans if you give them ample notice of the changes. They will respond better if you communicate this message clearly.
By showing confidence when you increase your prices, consumers will be more willing to accept the new price.
further information about Profitero's competitor price monitoring technology
for retailers and manufacturers, visit: http://www.profitero.com.
intelligence company Profitero
works with retailers and manufacturers to help them increase sales and maximise
their profits by using competitor price, promotions and stock information at
scale. For more information on Profitero price intelligence and competitor monitoring,
or email firstname.lastname@example.org.