With inflation hitting records in many parts of the world, how should you approach price increase this year? In this podcast episode, I’ll be taking a closer look at improving your pricing strategy without alienating existing clients.
Listen below.
0:54 – It is a cop-out to increase prices based on rising living costs without also increasing the value that is provided.
1:20 – You are short-changing yourself if you utilize a price increase approach based on inflation.
1:36 – Significantly increase your prices beyond simple inflation and do it in a way that makes more sense for the client.
1:57 – The first approach is to implement an annual re-engagement process.
2:35 – The trick is to offer them their current service level and pricing.
3:21 – The second approach is to apply a blanket price increase across your client base.
4:05 – If you really want to save capacity by increasing prices, you need to be more aggressive with your price increases.
4:33 – I always suggest using 3 tiers of pricing options when increasing your prices.
4:49 – Increasing your prices solely based on inflation is a poor customer experience and it also shortchanges your firm.
5:00 – Approach 1 is to simply engage in an annual re-engagement process.
5:13 – Approach 2 is where you aggressively increase your prices in an effort to shed clients.
