Raising your prices is never easy, and the timing always sucks. But it’s an inevitable fact in most business models, so the key is learning how to best raise prices and still keep your customer base.
Our economy is giving everyone permission to raise their prices now.
With gas going up, airlines charging for everything and milk prices skyrocketing, Americans are getting used to hearing that prices on just about anything is going up. Which should give you a little bit of a free pass (well, almost).
The idea is not to exploit the opportunity, but to accept that customer spending might go down, and your margins might’ve been tight for a long time, and it’s simply the right time to raise prices, even if your costs haven’t gone up in the last six months.
It will be a while before price increases are as easily accepted as they are now.
Of course, if you can lower prices, that might be even better. It could make you a hero. But whatever you do, don’t allow your prices to just stay the same. Either capitalize on the opportunity to increase margins, or capitalize on increased volume via the marketing advantage of lower prices. But don’t let those prices stay the same.
Excellent weekend of reading – enjoy
- Healing and Mercy: This is an excellently written story of a high school girl who was raped in 1989 and how she’s coped with it since and managed to find forgiveness and mercy. This happened in my home town when I was in middle school, so it definitely h it home to me. It’s a four part series – here’s a link to all the stories.
- Help! My Company is Replacing Me with a Doorstop: Too many executives see their jobs as to simply “keep the doors open.” Which is the very reason the doors are continually closing. Ubereye points out the importance of passion and vision from a business’s leaders.
- Pharmer’s Market: I’ve just discovered Tom Fishburne and his excellent cartoons. This one hits home to me, as I’ve often got hot opinions on the pharmaceutical industry, especially advertising something that requires a prescription. Don’t get me started . . . . .
- How to Correct an Evangelist: Most of us are dying for people to speak favorably about our product. But what happens when what they say isn’t exactly right? Jackie’s got an excellent model to follow on this post.
- 5 Tips for a Successful Freelance Writing Career: I’ve been browsing lots of posts lately on freelance writing – it’s just something that’s always interested me. These tips from Anna make sense.
- The Super Bowl in Review: Paul posts his takes on this year’s Super Bowl ads. I’ve got more coming on this topic myself, but this post is an excellent summary and commentary.
- Should You Lower Prices During a Recession: This is another one I’ll be writing on more in the future. So, we’re in a recession. What’s that mean for marketing? Most will make a mad dash to the being the cheap choice, but Drew cautions us in this post. As did Mark in advising that, during a recession, we “don’t drink piss.”
- Marketing Lessons from School Lunch: It’s important to realize that you’re marketing to a lot more people than your target audience, and they all have some form of influence over the other members of the group. This post explains this principle in an easy-to-digest way that might even be pegboard worthy.
Posted in Weekend Reading
Tagged advertising, Cartoons, Citizen Marketer, Commercials, Economy, Faith, Funny stuff, Humor, Leadership, Life, Marketing, Money, Pharmaceutical Industry, Recession, Religion, super bowl, Writing
I thoroughly enjoyed reading through Mark’s post on marketing in the coming recession. You’ll have to link over and read the first couple paragraphs to find out what drinking piss has to do with this. Here are a few other highlights from the post:
Most importantly, remember to point out that the brands that continue to build their equity in the recession will be best placed to enjoy the fruits of their labour when the economy inevitably returns to growth.
The real problem comes in the middle. If you are not in the top or bottom tier, the recession is likely to deal you a particularly difficult hand in 2008.
Word on the street is that January marks the first month of the recession we’ve been hearing so much about. Which means wallets are about to tighten up and get a little skinnier.
Unfortunately, it also means spending on the “extra stuff” is going to decline, and, unfortunately, marketing is usually lumped into that “extra stuff” category. Which is obscenely misguided. Just as the smart financial advisors will tell you to invest more in the stock market when it’s in a decline (realizing you’ll get more bang for your buck long-term), so companies should put more into their marketing and growth strategies during a recession. Partially because only marketing initiatives lead to growth, and partially because most of your competitors will be too scared to do it.
Instead, the conservative executive will pinch pennies and look for ways to cut operating costs. Which is a wise thing to do, but not at the expense of marketing and strategic growth. Operations focuses on less money going out; Marketing focuses on more money coming in. It’s usually much easier to find big ways to get money coming in than it is to find big ways to hold on to what you’ve already got.