John Hurd’s latest ‘e-Wealth Daily’ article is titled “Everything Is Going Up”. [é-Wealth Daily’Article]

John Hurd’s latest ‘e-Wealth Daily’ article:

Everything Is Going Up

There’s a sign posted in front of the cash register at a small restaurant near my home. It states:

“Prices have increased by 50 cents because everything costs more.”

While the message may be a little lost in translation, it is clear to see that prices are rising.

Leading the pack of price-jumping products are clothing and gasoline. If you’ve been watching the pumps lately, one of these certainly isn’t a big secret.

Rising gasoline costs, as we saw all last year, translate to higher transportation costs, which in turn raise the cost of pretty much everything else.

As prices continue to rise, and they will for a little while longer at least, there are two ways this could affect you and your business.

First, let’s look at how rising costs are going to affect you, personally. You’re going to have to make a few choices in what you buy and why you are buying it. I have to assume that you’re already managing your purchases based not only on price, but also on quality. For example, a product that costs $20 and only lasts you a month may not be worth the savings over a product that costs $100 and could last up to two years.

Secondly, rising costs are going to affect your business and possibly drive up the prices you charge for your product or service. As the owner of the small restaurant I mentioned earlier most likely discovered, even a small price increase of 50 cents is not going to go unnoticed.

Your goal should be to counter the resistance you may get from even loyal customers by being forthcoming with the reasons why you have to raise your prices. Whether you decide to post a notice or take on complaints directly is up to you. I believe that communicating face-to-face is always the better option to help you overcome objections.

And, finally, you should be adding value to your products and services that not only helps justify price increases, but also helps you keep your customers happy.

Adding value doesn’t always mean tagging on additional features or services. Create a back-story for your business. Infomercials use this tactic to prove that a product is not only useful, but it is also essential. Let your customers know who you are and why you do what you do. Brochures can help tell your story and reinforce why you’re the best choice for the money.

Battling against rising prices is going to be a challenge for all business owners. Those who learn how to soften the blow to their customers are the ones who could see prosperity in even the roughest markets.

e-Wealth Daily

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