Price increases are sometimes unavoidable and, as many businesses are dealing with cost increases, supply chain bottlenecks, and labor shortages, widescale price increases are in effect.
The key to implementing a price hike with minimal loss of customers is timing. It’s hard to be the first one in your industry to raise your prices. If others don’t follow suit, your business could be in the embarrassing position of having to rescind price increases and determining other ways to make ends meet. Here are some key considerations when weighing the pros and cons of increasing your prices.
Customer Loyalty
The first step is to gauge customer loyalty. Some companies have built a base of loyal customers who are willing to pay a premium for their brands. Others have a customer base that’s made up of bargain hunters who would be willing to switch brands to save a few dollars.
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