Remember inflation is not a good thing or a bad thing. It is simply a thing.
The good or bad aspect depends on which side of the table you are sitting.
If you are in a position to raise prices and not lose customers, then inflation is a good thing.
If you are in a position where prices are rising more than the cash you have coming in, then inflation is a bad thing.
Most people focus on increasing their prices, but let’s be fair – that should have been done before the inflation hit. What do I mean? Well, when you factor in new pricing adding a percentage to cover future inflation should always be a part of the puzzle.
Here’s an example. Let’s say you feel it is time to increase your prices by 10%. The you need to increase it by that plus your projected inflation rate. This way you’ve protected yourself against future inflation.
A better alternative to raising pricing – introduce new products/services at a lower entry price point
Remember when we raise prices – we will lose customers. As prices go up the number of customers go down. Now, this isn’t a problem if the number of customer revenue lost is less than the customer revenues gained from the price adjustment.
But remember as prices go up customers seek alternatives. And this is the real opportunity for you.
This is the time to introduce products and services at a lower cost. Not cheaper, but a lower entry point to your products and services.
Because as your competitors introduce higher pricing, you may be able to offer a better service/product at a lower price – to a new customer base.
I’ll give you some examples from our own company.
Example One: Customer Problem/Solution for a Podcaster
A former consulting client was challenged with how to grow their podcast. We chatted and it occurred to me that normal consulting would be cost prohibitive. So what could I offer as an alternative. I suggested private acting classes. Many may not know that I used to own a business doing just that for professional actors.
He agreed. After a little bit of work, I realized there was a way to offer this to others and we created the Improv Acting for Business product. The entry price point for this product is $50. You get one private session per month and some follow up practice games between sessions. You can subscribe to that service here.
This is a good service for any of the following types of people
- sales person
- marketing person
- small business owner
- shy/introverted person
Example Two: Social Media Management Challenges
Some of our larger clients have indicated that they will be cutting back on their social media managers. And while it makes sense, they don’t fully understand how they may be cutting the wrong group of people.
Then we realized individuals don’t really have an understanding of what social media management is and is not.
It isn’t about posting.
It is about a weekly focus and constantly reviewing what is and is not working within an ever changing environment.
And so we were able to introduce social media management via our social media content creation and development site Bearfluencer.com
You can find out more information on that service here
We were able to introduce it at $25 per week per two social media accounts. Order here
That includes a bonus of a private session for every 13 weeks paid.
There’s also a 10% discount for people who commit to 6 months up front . Order here
This package includes a bonus of a private session every month.