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Jun 14, 2022 - 09:46 PM
It’s no longer a secret that inflation is at an all-time high, gas costs are quickly becoming a painful affair, and food prices are already beginning to climb.
Businesses are already gearing up for what’s looking to become a recession. And with most companies taking damaging hits, the most critical question on every entrepreneur's mind is figuring out whether to increase prices.
So let’s talk about that; can you comfortably raise prices without losing a significant portion of your customers?
Your Industry MattersFirst, understand that according to The Wallstreet Journal, your ability to raise prices depends on the industry of your business.
Say you’re running an eCommerce business in the fashion, software, or technology industry that relies on cheap pricing to attract customers; raising your prices can affect your customer base.
But, if you’re running an eCommerce business that focuses on industries with more brand loyalty, such as automobiles, personal, or household products, you can conveniently raise prices without triggering customers.
When raising prices, companies with great customer loyalty already have an easier job.
So instead of focusing on whether or not to raise prices, ask yourself, has your business earned enough loyalty and reputation to support a price boost?
Because if it has, your consumers, regardless of industry, would be more prepared to accept the change.
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