As production and marketing costs increase, you will have to increase the price of your offerings. Here are some cues to get your customers to accept the price rise:
- Package the offering under a different label. Brand it differently and create a new advertising campaign and packaging. Increase the brand value, increase the price.
- Change the pricing strategy or slabs. You can create or segregate slabs for prices.
- Change the distribution strategy. You can also change the platform and channel for pitching, or selling your offering.
- Increase prices for your test market, and then increase the prices for the rest of your market segment.
- Give reasons for increasing the price of your offering. The reasons may be to increase the speed, the quality, the ingredients and give validity to your explanation. When the customer feels that he is getting the benefit of the price increase and in effect he will get a better product experience, he will pay the new price.
- You could re-position your brand to fit into another category, where your customer gets add on while you get your profits.
Time your price rise accurately. Train your sales people to express the price rise and the reason the price is being increased.