Inflation has spiked, supply chain issues persist, a vicious regional war has the potential to tip over into an ugly global crisis…and your customers are likely being protective with their dollars.
What’s a business owner to do?
You can’t ignore it, but overreacting is also a danger.
In a paper written for Harvard Business Review, Professor Oded Koenigsberg contends that the usual solutions of cutting costs and raising prices is an outdated holdover from the 1970s. Neither is particularly attractive, and both could possibly do more harm than good. There are other options, including overhauling your pricing structure.
Changing your pricing model differs from merely “raising prices.” It could include creative ideas like implementing subscription plans for your product or bundling items together.
This is also a good time to take a look at your portfolio of offerings. Something Professor Koeningsberg says you should be doing on a regular basis.
Jamie Adamchuck, business management consultant and founder of UE Coaching offers this option. Build massive value. But value is in the mind of the consumer, so how do you know what they’ll find valuable? Ya gotta ask. And ask without trying to sell stuff.
Steve Rae, one of our senior partners with a substantial pedigree of running successful businesses and consulting several dozen others, says now it’s more important than ever to adhere to your company’s core values.
If history has taught us anything, both recessions and high inflationary times can be ugly…but they’re also short-lived. These situations are never forever, so what can you do now to strengthen your position, improve value in the minds of your customers, and help them be sure…absolutely sure…they’ve made the right choice.