How to Retain Customers Through a Price Increase
Let’s face it, price increases can be a point of anxiety for everyone. It’s tempting to put off a needed price adjustment in hopes of avoiding friction with your customers.
Yet, 2020 has been a rollercoaster year for the food industry! There’s no doubt that many producers have assumed increased costs to keep their business running and ultimately, it’s important to remember that you owe it to your customers to ensure your pricing is in a sustainable position in order to continue offering the high quality products & service you provide.
So, while a price adjustment can be intimidating, every business will have to navigate this at some point. The good news is that there are ways to communicate a price increase in a way that builds empathy between you and your customers.
Which is why we want to share 4 helpful tips for increasing prices while maintaining trust with your customers.
Through our experience at Seven Sons, we’ve narrowed down four tips to help navigate a price increase that maintains that sacred trust between you and your customers.
1.) Analyze whether an announcement is even necessary!
Minimize email fatigue by only making an announcement when...
(a.) the increase is affects a wide range of products
(b.) the increase affects some of your staple products that your customers may be more familiar with
2.) Segment your announcement!
Focus your communications on the customers who really need the courtesy update; i.e. if you’re increasing the price for grass fed beef, there’s no need to alert your monthly milk club of the change.
3.) Build trust with transparency!
Be sure you have a good understanding of the top 2-3 factors that have lead to the need to increase pricing, and communicate that to your customers. You can’t have trust without honesty, so this is a MUST in order to maintain rapport with you customers.
4.) Give them something positive!
Let your customers know you still care about their buying experience. If you can launch some special benefit or product in your announcement, great! At the very least, consider giving out a grace period so your customers have more time to make the adjustment.
We've put together an example email you can use to help craft your own pricing announcement. Just click the button below for access to this free resource!
For more guidance on how to price your products with confidence, checkout our previous blog article on 5 Must Know Tips for Pricing Your Farm Products