How much notice would you give to your current customers of weekly Business English classes that you are about to increase your prices?
And how much would you increase them? Percentage wise. I'm looking at about a 6-7% increase but want to know what others think.
Increasing prices - how much notice?
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tigertiger
- Posts: 246
- Joined: Sun Nov 13, 2005 9:42 am
If they buy in blocks of (n) lessons. Then perhaps one months notice, and say that as of x date prices will be. Units bought before that date will be at the old price. This option gives you a chance to get some early purchase cash into the bank.
If they buy week by week, then agian a month should be ok. But at this time of year I would be inclined to do an 'as of 1st January 2006' and notify them soonest. This is will not alarm customers and it is a date when many new starts are seen as normal.
What ever you do it needs to be consistent for all customers.
The amount of increase needs to reflect, what the market will bear, local inflation, and the need to maintain profit margins. If you have more customers than you can cope with you can put up your prices a bit more.
Warning. If you don't increase your prices sufficently it will be harder to ask for a bigger price hike next year to make up for it.
If they buy week by week, then agian a month should be ok. But at this time of year I would be inclined to do an 'as of 1st January 2006' and notify them soonest. This is will not alarm customers and it is a date when many new starts are seen as normal.
What ever you do it needs to be consistent for all customers.
The amount of increase needs to reflect, what the market will bear, local inflation, and the need to maintain profit margins. If you have more customers than you can cope with you can put up your prices a bit more.
Warning. If you don't increase your prices sufficently it will be harder to ask for a bigger price hike next year to make up for it.
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Marcethebest
- Posts: 15
- Joined: Sun Nov 20, 2005 3:06 pm
- Location: Argentina
Re: Increasing prices - how much notice?
I was thinking of one - month notice, but it depends on where you are in the worldShowem wrote:How much notice would you give to your current customers of weekly Business English classes that you are about to increase your prices?
And how much would you increase them? Percentage wise. I'm looking at about a 6-7% increase but want to know what others think.
i would do it that way here in Argentina, where are you?-
Marcethebest
- Posts: 15
- Joined: Sun Nov 20, 2005 3:06 pm
- Location: Argentina
Thanks for the advice already given. I've decided to wait until April 1st to increase prices. No April Fools intended, just that several of my classes will have been running a year by then, and it's the start fiscal year for some, so it makes sense.
Marce, yes that was right.
Best regards from cool and slightly snowy Germany.
Marce, yes that was right.
Best regards from cool and slightly snowy Germany.