If you haven’t already, you will likely be increasing prices. Try as you might to keep your customers happy by eating some profit, your increased expenses will eventually have to be passed along.
Here is the right way to raise prices, according to Harvard Business blogger Tracy Mullin, CEO of the National Retail Federation.
- First, educate your employees about how much things cost you as a retailer so that they can in turn explain the math to angry consumers who wonder why milk costs $13 a gallon.
- Second, educate the consumers directly by using advertising and signs. “It should explain both how the retailer is trying to keep prices down and why some prices are out of their control,” says Mullin.
Related Reading from Harvard Business: Downturn 2008: A Manager’s Survival Guide
