Raise Prices to Cover Increased Costs
Watch out for rising gas prices! According to an article in the Gourmet Retailer Newsletter, retailers will be facing higher gas and energy bills over the next months due to the shutdown of a major Alaskan oil field. Full Story
As you start to make plans for the upcoming holiday season, consider adjusting your prices now in order to compensate for higher energy expenses you will incur.
Take a look at your basket offerings and think about increasing prices by 2% or 3%. If you already have a delivery charge, add $.50 onto each delivery or add a small handling charge to each shipment that you send by UPS or other delivery services. If you don’t already charge for delivery, start now!
Don’t wait until November to raise your prices or suddenly add hefty delivery or handling charges to your orders. Your customers will not be happy to see those increases when they’re making their holiday purchases! When your customers are budgeting and buying for the holidays, unexpected price changes and charges can create a lot of ill will. If your customer is shopping at the last minute, you may still get that order, but may lose future business.
Everyone is well aware of the energy crisis that we are facing. Be up front with your customers: let them know about these price increases and assure them that you’ll keep those charges to a minimum. By acting now, and keeping your customers informed, you can protect your own interests and as well as those of your customers.
2 comments August 16th, 2006
