Increasing the Price without Losing Customers

Pricing has never been an easy issue for most companies. Most of the companies I know have lost some, if not many, customers when their product or service got up to more than what their customers can afford for in their budget. Companies usually get backlash from this sort of minor setback especially when it balloons due to the reason that customer has opted and switched to the competitor’s side.

channel sales strategy

As one who manages things like this in the company, I do believe that not even a good channel sales strategy can prevent this predicament from happening after your merchandise has increased its price. Although, a creative channel sales strategy can be a good solution to this, in my opinion, it doesn’t hurt to set a few preventive measures from letting the customers lose their attention to your product or service. Here’s my own list on what to do just in case you are in need of increasing your price without loosing your customers:

1. Avoid Sudden Increase – of course, as any customer would hate, the one thing that people hate are unpleasant surprises. For customers who strictly depend or follow their budget plan, the first thing that would turn them away from your product is a surprise that their favorite, if not often bought, merchandise hiked up for a price they couldn’t adjust to conveniently. Not even a good channel sales strategy would salvage that.

2. Gradual Increase – If you intend on increasing the price for at least half of what it’s bought today, at least make it easy on the customers. Increase it ever so slowly, like hiking it up an eighth every month for the customers to expect the changes.

3. Value Your Partners – This is when your partners will do special roles. If there is an urgent need to increase significantly, then the relationships of your partners to the customers will handle and ease off the shock. Loyalty will be your greatest weapon.

4. Provide leeway – You can’t please everyone, so at least please those who pay. If it’s unavoidable, you should keep what you should among the target customers. If even those customers quit, you may want to reconsider and think if your price really is justifiable.