I am coming to you with breaking news. It seems like it’s on the tip of everyone’s tongue.
Gasp! Now fear not, inflation is a very normal part of the economic cycle.
In economics, we have what is known as a basket of goods and services. This fictional basket of goods reflects the fixed set of consumer goods that can be purchased based on a certain price. The price of said basket is used to measure inflation. Inflation is the increase of goods and services, thus decreasing the value of money. The same amount of money can now buy less; it has less purchasing power. Naturally, this affects the purchasing power and inflation rates of countries whose currency are pegged to the United States dollar across the globe.
Should I be worried?
Now, why is inflation such a hot topic right now? For one, the media loves to see the public scurry about in sheer panic. Because when you are filled with fear and confusion, your guard is down. Secondly, logistics is having a very hard couple of years so expect supply of all sorts of goods to go down, and their prices to go up. Thirdly, higher wages for the labor that stocks our shelves and makes our food has gone up and the difference has been passed to the American public. Lastly, decisions from the White House have made gas prices skyrocket, so increase that line item in your budget by a decent amount. Should you be worried? Worried? No. Proactive? Yes. With all of these factors in my mind, consider beefing up your emergency fund with an extra month or two of living expenses.
How can my business increase prices?
Naturally, with higher rates of inflation, your business will consider raising prices. You have wages and benefits to consider, not to mention rent prices. I have heard leaders from Fortune 50 companies say to increase prices discreetly. Now, I have no doubt that they know what they’re talking about through decades worth of insight. You can highlight other offerings and deals to offset the pain of higher prices for the customer. Offer value-sized products or packages and consider introducing or enhancing loyalty programs. Throw in a complementary good or service for free or at a discounted price.
Now, in some instances, it can benefit the company and customer relationship to actually alert them of this change. Rosy, do you mean I shouldn’t do everything in my power to hide the fact that our prices have gone up? Well, yes, that is what I am saying if you are able to communicate properly with your customers.
Imagine this. Your customer is scrolling through Instagram or opening a company email and they come across your message that you have made the decision as a company to increase this service and that product by a designated percentage. You calmly and confidently relay the message that this so that you can keep all 5,000 employees and support them as a company. To show your gratitude to the customer, they can receive a quality promotional item with this code for the next 48 hours. Your customer believes that when they shop with you they can expect a quality product, freebies for their loyalty, and all the good feels for supporting a business that respects them enough to be clear and honest with them.
Contact Heritage Writing Co. for social media strategies that create an honest relationship with customers, so that when you want to share something seemingly adverse, you can do so calmly and brand yourself as a company who is real.
Check out The New Generation of Shoppers: Trading their Disposable Income for Authenticity to read how customers want to know they are supporting worthy companies.