Do You Have the Guts It Takes to Fire 800,000 Customers?
What can a printer learn from all this?
1) It takes guts to raise prices, but be careful not to fall into the trap of not raising prices and watching your margins go in the tank.
2) Be careful holding onto low-margin customers just to feed the production line. Do not hold onto low-margin business, but instead look harder at selling to customers who appreciate your value add and are willing to pay for it.
3) Planning for price increases can’t be stressed enough. Customers will know. Have a communication plan in place to explain it is coming, when it arrives, and after the fact.
4) Be ready for some fallout, but look at the big picture for the long-term health of the business.
5) Be careful not to take advice from those who are more concerned about their short-term gain vs. the health of your business. I worked for a publicly traded company and weird stuff happens for the wrong reasons. Be careful who gives you advice. Look for the motive behind it.
If you need to raise prices, do so with care; but don’t hesitate if the writing is on the wall that something needs to change. Be ahead of the curve.
Of course, the better alternative is to leverage technology, stay on the cutting edge, drive costs out, and pass on savings to customers by offering more value as you invest thoughtfully. Position yourself so customers seek you out for that new, innovative service, so you are able to drive up revenue and profit together. Wouldn’t that be a nice alternative? I know...easier said than done. But, there are printers out there doing it.