This is the 2nd part of our Blog on “The secrets to raising your prices without losing any customers”.
The second strategy is the “Across the Board”.
You increase your pricing for all your products or services by a specific percentage… say 7%. But before you take action, research your competition. The key here is to determine the uniqueness of your product or service… including the delivery method.
If your unique, a price increase can be easily implemented without suffering any adverse effects:-
First, identify your competitors who provide the same or a similar product or service. Who do you compete with during your normal workday?
– Take notes, write down their names and what they offer.
– Special deals they offer.
– Their various marketing and advertising offers.
– Collect their ads, sign on to their mailing lists.
– Visit their stores.
– Walk their aisles, ask them questions.
– Make notes how their staff treat you.
Sam Walton of wal-mart fame was infamous for routing around their competitor’s stores with a notebook in hand, taking notes on prices, offers and anything else he thought that they were doing that was interesting.
Now ask yourself the following questions…
– What prices do you charge for your primary products / services?
– When was the last time you raised your prices?
– How do your prices compare with your competitors?
– How does your product or service compare to your competitors?
– Do you provide any value-added services that your customer perceives that makes your product more valuable?
Then ask yourself the following questions…
- Is it easy for clients to price shop when they buy what you sell?
- Do you know your competitors’ biggest weaknesses or failings?
- Do you (or can you) specifically compensate for that failing so that you gain vital market share?
- What would you estimate the impact would be on your sales conversion rate if you raised your prices by just 3%?
Tap into your local resources…
Go to your local college or business school and either hire a business student to do this research for you maybe you could offer to host an internship for a qualified student. Colleges and Business schools are always looking for good quality business projects for their students. They will gladly help you, the important point to remember is that it is the quality of your list of questions that will determine how good the quality of research they come back with is. Ask them to submit their findings in a typed report or an Excel spreadsheet delivered to you by email. Don’t forget to set smart deadlines for the submission. Ask them to break it down into several categories or columns:-
– Make sure it includes names and addresses.
- A summary of all competing products or services.
- The prices they currently charge.
- Their individual strengths and weaknesses.
- Their marketing strategies and objectives.
If possible, obtain more in-depth research such as:-
– Levels of customer support.
– Cost of delivery.
– Your competitors primary Market Dominating Position and how they communicate it
– Their payment terms or options.
– Their risk-reversal strategies including, guarantees or warranties.
– Their marketing and advertising collateral.
Here are the best sources for finding these answers:-
- – Start with the Internet, check out their website.
- – Become a mystery shopper and visit their stores or locations – Actually order from them.
- – Talk to their customers.
- – Analyse their ads.
- – Attend their speeches or presentations.
- – Go to their trade shows and visit their displays.
- – Check out various written sources such as the Yellow Pages, their annual reports online databases such as Experian, or companies house.
– Ask your public librarian for help, the library has access to many paid for databases with an incredible amount of information on them.
– Industry surveys
– Trade association publications
– Local newspapers, magazines or journals
Read next weeks installment to find out more about the third strategy.
Twelve intensive half-day meetings.
