How to approach your pricing post lockdown
If you’re thinking about putting your prices up now, read on to find out why this would be the number one mistake for getting your business back on track!
As we ease out of lockdown and things are starting to open up, people are getting back into the way of buying things again. But, they are understandably being careful about what they spend and, as a business owner, you need to take that into account as your approach your pricing post lockdown.
For that reason, you have to think very carefully about what strategies you are going to use to get your business back on track. There are definitely some right ways and some very wrong ways to go about building business back up post lockdown. One thing is for sure – if you raise your prices now to compensate for your loss of earnings during lockdown, you will only alienate people further down the line.
Covid-19 has revealed our human side and as business owners, we need to make sure we respond to that human side – we need to show people that we understand they have been struggling and make suggestions as to how we can make things better for them. That way, by building up these relationships and offering your customers what they need right now, you will be rewarded with their loyalty for months, maybe years to come.
Here are my top tips on what to do and what not to do to with your pricing structure post lockdown…
Things you should be doing
First and foremost, remember the human element in all of this. Concentrate on the human side and market with a human focus. Even though we might not know the details, we can be pretty sure that everyone has been affected in some way during this time.
Welcome customers back to the fold with open arms, let them know they are special and think about what you can do for your customer base at this time, think about what they really need from you right now. It’s about building relationships back up with the customers you’ve had in the past but it’s also a great opportunity to grow new relationships as well.
Build and reward loyalty
This is a great time for loyalty cards to encourage people to come back to you more often. If you can, introduce some kind of loyalty system. It doesn’t have to be just for coffee shops – you can offer loyalty on many services and a lot of products, for example, repeat booking of training sessions and online classes.
Market your promotions
You’ve spent all this time coming up with some great price promotion strategies, but don’t forget to market them! Remember, you have to be seen to sell, so you need to get those promotions out there. Think about how you are going to tell people about your promotions, about the value you’ve added, about how you’ve missed your loyal customers. Now is the time to build on that email list, to get your numbers up, to communicate with past customers and to build relationships with new ones.
What not to do
Don’t take advantage of people
If you’ve been hit hard by coronavirus, don’t try to make up your losses by massively increasing your price. If people think you are taking advantage of them it will have a very negative, long-lasting effect on your business. Of course, if you have had to cover costs due to Covid-19, such as buying in PPE, then you could be justified in passing these costs on to customers, but explain this to them. Most people will understand. However, be sure to drop your prices again if you’re passing on the costs for a limited period of time.
Don’t market multiple offers
It can be tempting to discount, cut prices and offer a raft of promotions all at once to get people to come back to you but this would be confusing, not just for you, but for the customer. If you use clever promotional strategies, you don’t need to cut costs. But the offers you do use need to be well thought out and implemented one at a time. Think about what offers and promotions have worked well for you in the past and start to introduce these or similar offers one at a time. Plan out what you think will be most effective and measure each carefully to see what works and what doesn’t work.
Don’t drop your prices
Rather than offering discounts or dropping prices, think about adding extra value to what you do offer. Upselling your products or services will encourage your audience to buy more and encourage repeat business. It is also a way of encouraging people to bring forward their purchasing decisions. For example, you might offer 6 classes for the price of 5 during the summer holidays if you are a yoga teacher; if you run a beauty salon, you could offer a half price pedicure for every manicure booked in August; or if you offer training, you could guarantee that anyone who signs up for a course with you now to take in 2021 can receive the package at today’s rates. It’s about offering things that increase the value of what you are selling and that make it more appealing to your customers.
These suggestions apply to any business coming out of lockdown, but you can also use this promotional pricing strategy at any time you feel your pricing structure isn’t working or you want to rethink the way you are approaching price.
For more expert tips and free resources about marketing your business, head over to my website and take a look at the new Resources page at Alisonteare.com/resources
If you would like to learn more about how to approach your pricing after lockdown listen to the full Podcast, go to the Simply Marketing Show: Episode 77