RAISE PRICES WITHOUT LOSING CUSTOMERS Sticker Shock Survival
Over the past few years, we’ve watched prices rise at the grocery store, gas pump, restaurants, and just about everywhere else we spend money. Tariffs have left many business owners feeling like they must raise prices to offset their potential cost, but this can create new concerns, as the increased prices will put some customers off. Thus, business owners are caught between a rock and a hard place. You can’t realistically eat the cost of tariffs or inflation while expecting to earn the same profit. However, if you raise prices, you risk scaring away customers who can no longer afford or want to spend so much on your products or services. So, what do you do? If you’re a business owner, you’ve likely already contemplated the potential cost of tariffs to your business and developed a plan to stay afloat. Most of you will likely have to raise prices to maintain profits, pay your workforce, and keep the same quality of products and services. You may have done this once and are now looking at a second price increase within a year. In these uncertain times, your business’s success depends on your actions and the relationships you’ve developed with your customer base. As you start developing your business plans for 2026, consider including an action plan in case you need to raise prices. If you’re unsure what you may need to do, don’t worry! We’ve got some solutions that could prove very beneficial for your business.
that you will have to raise the price of your products. Be honest and straightforward — this is not a time to beat around the bush. While this keeps your customers in the know, it also has another unintended effect. Those who love your products or service will rush to purchase before the prices increase. Another feature you should consider enabling if your business has an online presence is to add additional information to your checkout page. Instead of raising the costs of your goods, clearly show that the price increase comes from tariffs or another variable when your clients are about to check out. This will help them see that the rise in cost is entirely out of your control. Adapt Your Marketing Many businesses exclusively use marketing to highlight upcoming promotions and sales, but this won’t be a reasonable option once your prices increase. If you start promoting sales in line with what your full price was a year ago, your customers will grow frustrated. Instead, you need to pivot your marketing altogether and find a new approach to connecting with your base. One of the best ways to do this is by focusing your marketing efforts on the “why” behind the purchase. Your customers need a reason to buy from your business, especially if they can get similar products or services for a lower price elsewhere. Think about what separates your company before putting on your creative hat and developing a story around your brand. Consider who made your product, what it represents, and why it’s worth purchasing for your
Be Transparent The quickest way to send your customers running for the hills is to raise your prices without notice or explanation. If you charge them more for the products or services they’ve used for years, they deserve to know why. If you don’t explain, your customers will assume you based the decision on greed. Email your customers or post on your brand’s social media page whenever you need to announce
customers. You need to connect with their emotions if you want them to remain loyal when prices rise. When you have to raise your prices, the last thing you want is for your customers to think you’re doing it out of greed. Adjusting your marketing and being transparent can give your customers a reason to continue buying from you.
2 CraigHansonCPA.com
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