Not long ago, I was using the services of a company who introduced a new plan. They carefully worded it so that it looked like they were charging you $2.00 less for the same service. However, it would be two dollars less if you gave up half of your services.
If you wanted to continue to receive the same service that you had previously been receiving, you would have to double that “two dollars off” price. Their customers would now pay 60% more for the services they were already receiving. You didn’t have to do anything; they would take care of everything for you. It wasn’t the price increase that frustrated me, though I was as unhappy as the rest. It was their deceptive methods that they used.
Just Keep it Real
For myself, I would have rather received an email stating that because their costs had increased, they were passing this on to their consumers. This is the truth. Our overhead increases from time to time, and we decide whether to pass this cost on or absorb it ourselves. Depending on how much of an increase it is, sometimes we absorb it for a while and later feel that we have to pass it on. Either way, just be honest.
Consumers understand far more than you think. Today’s consumer has done extensive research before contacting you. They want to be treated with respect and appreciate straightforward conversation. Today’s consumer feels that you are not showing respect when you craft answers to market your products. They want you to keep it real. If you have a price increase – admit it. It’s all about integrity.
Simple Honest Communication
Of course, some explanation is necessary when effecting a price change, but backhanded efforts to introduce a price change work against you and can cost your business in the long run. When you dance around the truth and make carefully worded false claims to effect a price change, your clients might take that as an insult. We have all heard someone say, “What? Do they think I’m stupid?” Again today’s consumer is educated and appreciates transparency. Just be upfront.
On the other hand, simple honest communication with your current customers goes a long way and can result in their respect concerning your honesty. There is much being said recently about integrity. Showing integrity with your pricing efforts can only help your business.
Are you thinking about a price change? Do your customers, your business, and yourself a favor. Just be real and admit that prices have increased. While your clients may be unhappy that you have raised your prices, they will appreciate that you haven’t worded your increase in such a way that it looks like you are giving them more. Today’s consumer sees right through deception. They want to be treated with a degree of respect. Besides, when you dance around the truth, it’s hard to take you serious. So, when increasing your prices, just keep it real.
In Any Business – Honesty Is The Best Policy