Everyone likes a price decrease. The prices I pay as a consumer and business owner are always going up. In those very rare instances when someone lowers a price, it makes me smile (as the buyer, not necessarily because I thought it was a good business decision.)
The point is, if you lower your prices, you should announce it loudly and make your customers happy. After all, that’s probably why you did it.
However, I’ve run into too many companies that have lowered prices without getting credit.
Wait, you’re probably thinking. Who are these companies lowering their prices and how come my wallet doesn’t feel the relief?
Actually, the price didn’t change, but the environment did. Inflation! Inflation has totaled about 20% over the last 3 years. That means, by not raising prices at least 20% over these 3 years, businesses have essentially lowered price by 20%. And nobody noticed. They didn’t get credit.
If you are not raising prices at least at the rate of inflation, you are giving money away. As inflation subsides, it will become less acceptable to use it as a reason to raise prices. You will find it harder to justify your price increases. If you haven’t raised prices in years, do it now.
Of course, I don’t recommend across-the-board price increases. Be thoughtful. Raise prices on the products, customers, and situations where you deliver more customer value. If you need help, let us know.
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Tags: inflation, price, pricing, pricing skills, pricing value, value
