Inflation poses a significant challenge for Nigerians, as highlighted by statistics from the National Bureau of Statistics indicating a steep rise in urban inflation rates. In January 2024, the rate reached 31.95%, marking a notable increase of 9.40% compared to the previous year’s figure of 22.55%.

In such an environment, the stability of product prices seems elusive, presenting a formidable challenge for businesses. As operational costs escalate, adjusting prices becomes a necessity for maintaining profitability or even achieving breakeven.

However, the prospect of raising prices brings the genuine risk of alienating customers who may perceive the new prices as unjustified or simply beyond their means.

Nevertheless, with a strategic approach, businesses can navigate this delicate balance and implement price increases without sacrificing their loyal customer base or enduring significant customer attrition.

This article delineates five effective strategies for raising prices while minimizing customer loss or disruption to business operations.

One of the most important things to do when raising prices is to give your customers advanced notice. Nobody likes stumbling upon the fact that a product is more expensive now than when they bought it.

Giving your customers advanced notice gives them time to prepare mentally for the change, making it an easier shock to absorb. This notice increases the chances of you retaining them as a customer.

As crucial as advanced notice is, it is often insufficient, but it is an excellent starting point. The next thing you need to do is tell your customers why you need to increase prices.

Customers like to feel seen. When you communicate with them about why you need to increase prices, they will know that you understand how the economic situation affects them but will realise it also affects you. This type of communication is what maintains a healthy customer-business relationship.

Instead of just increasing the prices of individual products, be creative with it. Create package deals to mask the increase in prices of individual products. Offer new services to go along with price increases so the price increase makes more sense to your customers.

The additional value you offer customers in times like this shows them that you care, and more often than not, it increases the likelihood of them remaining loyal to your business.

It is important to always seek feedback from your customers on the products and services you offer them. When you ask customers how they feel about your business and you are constantly making changes based on their feedback, your customers will know that their opinion matters. 

This feeling will make your customers develop a sense of belonging. Customers will feel at home with your business and react better to necessary price changes than if they felt unheard.

There are few things more frustrating for a customer than payment difficulty. In these times when everything is so expensive, customers want to be through with the payment process as quickly as possible and move on.

You need a reliable payment solution provider that will give your customers nothing to complain about; you need Fincra.

At Fincra, we offer solutions to make the payment collection journey easy and efficient for businesses. Our services include checkout options, payment links, and virtual accounts designed to facilitate a seamless customer payment experience.

Fincra offers different payment options, enabling customers to use their preferred method and quickly complete their transactions. On Fincra Checkout, they can pay with their cards, bank transfers and mobile money and M-Pesa. 

In these challenging times, giving your customers the best is important. Choose Fincra and allow your customers to benefit from a hassle-free transaction experience.

In times like this, businesses raising prices is inevitable, and we understand that. It would help to make these price increments bearable for your customers through the abovementioned ways.

Your customers will never forget how they felt about your business during hardship. It is important to prioritise them now to maintain an excellent customer-business relationship lasting for years.

Create a free account with Fincra here to give your customers the best.