𝐇𝐨𝐰 𝐝𝐨 𝐈 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞 𝐩𝐫𝐢𝐜𝐢𝐧𝐠? Increasing prices without losing customers is challenging for a small manufacturing business, but with the right strategies, it’s possible to do so while maintaining customer loyalty. One option, depending on the relationship with your customer, is transparency. If you can show direct cost increases (labor, material, transportation, etc.) it will help justify your rationale for an increase. However, if we're being honest, some large OEMs still don't care and just want the cheapest price they can get. Here are three other approaches:
Allison Seed
2mo
Jeff Johnson thank you for this. It's always nice to see transparency and supportive reasoning behind a price increase, rather than just doing it with no explanation. Thanks for sharing!
Fractional Senior Business Process Professional - Specializing in process Development, Testing, Mapping, Documenting, Refining, and Compliance | 30+ years experience with Startups to 15B focused on SMBs to 500M
2moPricing is a slippery slope. However, depending upon the services you offer, I found the best method was to increase prices as you add new customers. Once you’ve reached your saturation point for business, with excellent service of course, and new opportunities lie ahead, you go to your existing base and discuss your existing price and tell them of your growth, new rates and need to increase the price you charge, letting the customer know that if that is outside their budget you understand and that you’re sorry the new pricing will not work and wish them well. When the customer knows you’re willing to walk away, if they really want to work with you, they will understand and agree to the new pricing. Just be respectful!