When changing your prices you must explain to your customers how this change benefits them. You need to tell customers how the new price gives them more value for money.
It is easier to lower the price you charge if you have lowered your costs. However, be wary of changing the quality or specifications of a product or service just so you can decrease the price. These changes may not appeal to your customers, even at a lower price.
If you increase your prices then your customers will want to know what extra value they will receive. Many customers are price-driven. In a competitive market, it is important to clearly explain the additional features, new benefits or improved service that customers will enjoy as a result of the price increase.
You may have increased your prices because your costs have risen. In this case, your customers may not want to pay more for the same product or service, and they may go to one of your competitors. To avoid this, you should promote the benefits of staying with your business. You could promote your high levels of customer service, use loyalty discounts, or offer a discount voucher for their next purchase.
Make it easy for customers to see your new prices by changing all of your advertising material at the same time. Your website, newspaper or magazine advertisements, catalogues, shopfront posters and price stickers must always display your current prices.