24 Nov My wife and I have a well-established dry cleaning business. Due to increasing operating costs we are in a real need to raise our prices but are concerned that a lot of people will complain and that potentially we can lose some of our customers. Anything we can do to make this a smoother transition?
Honestly, you may be worrying too much about this. A common problem that small business owners have is that they underestimate their own product and its worth. A reasonable price increase is unlikely to drive away most of your key customers and might even draw more as they feel that higher prices equate to a better product. Keep in mind also that if you have, for example, a 10% profit margin, a 1% price hike means 10% more profit. A little bit can provide you with what you need to continue providing the service your customers have gotten used to. Also, consider offering discounts while raising prices, such as a referral discount, that will also have the benefit of increasing your customer base.