If you are, here are nine marketing actions you can take.
Most businesses have had to raise their prices because of inflation.
And this has meant a tricky balancing act.
On the one hand, they’ve HAD to do this to cover cost increases.
Yet on the other hand, raising prices can supress demand…and, in turn, revenue.
If you’ve found yourself stuck between this pricing rock and a hard place, here are nine actions you can take to try and counter this:
Things You Can Do Right Now
- Double-check that your marketing material covers ALL the benefits your product or service provides, especially the emotional benefits.
- Re-asses which customers you target. Can you focus on people in a higher income band?
- Consider adding extras. For example, free shipping, a loyalty programme, or a complimentary service.
- Offer product or service bundles. By offering a bundle deal, customers will feel like they are getting more for their money and may be willing to pay a higher price.
- It might sound obvious, but make sure your customers know how inflation has SPECIFICALLY affected your input costs. If you just blame price increases on inflation in general…well, this might be true…but it could also be seen as an “excuse” to raise prices.
Things You Can Do In The Medium to Long Term
- Enhance your brand. Branding is crucial when it comes to increasing perceived value, and a well-crafted brand can help justify a higher price point.
- Differentiate your product or service and position it as being in a “category of one”.
- Improve the quality of your product, service, and customer service. Make sure you deliver the best possible experience for your customers. If they’re happy with the quality of what you offer, they’ll ne more willing to pay a higher price.
- Offer financing options such as instalment payments or payment plans.
Of course, there is no magic bullet.
And it might be the case that some customers can genuinely no longer afford your product or service.
But for those who still can, reminding them of the value you provide… offering them extras or bulk options… and positioning your brand as unique or different… will help them feel more comfortable and confident spending their money with you, rather than your competitors.