Raising Prices Without Losing Customers

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(By Rick Fink) Everything is going up in price…gas prices, grocery prices, menu prices, lumber, clothing, even toys, and candy prices!

For local business owners, making the decision to increase their prices can be agonizing. Should I raise prices and take the risk of losing customers or should I hold them and settle for less profit?

Most business owners would rather have teeth pulled with pliers than have customers complain about increased prices.

I say most! Do you know which business owners don’t mind or fret too much about raising their prices? The ones that are branded the best.

A recent headline in the Wall Street Journal was this: “U.S. Companies Bet Shoppers Will Keep Paying Higher Prices”.

But there’s a catch. The article further states, “Price increases so far have paid off for makers of household staples as shoppers, particularly in the U.S. and Western Europe, have remained loyal to big-name brands”.

The keyword in that statement is “brands”. People do business with people they trust, and they purchase products that they trust! If they don’t know you or if they don’t trust you, the chance of them choosing your business decreases, dramatically!

Adding further proof, an analyst with RBC Capital Markets, Mr. Modi, said that big companies with well-known brands will more likely succeed in raising prices than budget or smaller brands in any given category.

Selling radio is no different. The stations and media reps that have built trust won’t have nearly as much pushback when it’s time to raise the rate! Have you ever noticed that the clients who “like” you and “trust” you rarely ask about rates? Whereas the clients and prospects that you have not yet built a relationship with will inquire about your pricing significantly more often.

Much of the article above came from this week’s SoundADvice article, titled “Raising Prices without Losing Customers”. SoundADvice is delivered every week to thousands of business owners and managers on behalf of local radio stations and media reps. It offered 12 tips to raise prices without losing customers.

Part of the SoundADvice program includes a weekly radio script that relates to the article sent. The script that accompanied this week’s issue explains who is responsible for increased prices. It’s not the local business owner. It also asks, on behalf of the station, that customers continue to support local businesses as they are forced to increase prices.

If you would like a Free copy of the radio script to run in your market, Click Here and we will send it to you! It’s a GREAT way to show support for your local business owners!

And it’s a great way to “brand” your station and build trust with your clients and prospects! Then… rates and ratings won’t be an issue!

NEVER Stop Learning – Get Better Every Day!

Rick Fink from ENS Media (www.ensmediausa.com) can be reached by phone at 605-310-2062 or e-mail at [email protected]

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