7♣️ Price complaints: A sign of success 

Are your customers complaining about your price? Do they say you're charging too much? That's great news. That's exactly what you want them saying. This is something I learnt right back at the beginning of my career. My very first Managing Director, the late John Bowen.

Problem or challenge

Many business leaders are hesitant to raise prices due to fear of losing customers. The challenge lies in understanding that customer complaints about price can actually be a positive sign. It indicates that your product or service is perceived as valuable and worth paying for.

Complexities

Ofcourse it can be difficult to differentiate between legitimate complaints about price and those that are simply bargaining tactics. Additionally, raising prices can be a risky decision if not executed properly.

Solution

Firstly don't be alarmed by customer complaints about pricing. It's a natural part of doing business. If they continue to purchase from you despite the higher price, it indicates that the value you provide outweighs the cost. Maintain your pricing strategy to ensure your business remains successful and profitable.

To effectively manage customer complaints about price, consider the following strategies:

1. Understand the value proposition: Clearly articulate the value your product or service provides to customers. This will help justify your pricing.

2. Educate customers: Explain the factors that contribute to your pricing, such as the cost of materials, labour, and research and development.

3. Highlight unique features: Emphasise the unique features and benefits that differentiate your offering from competitors.

4. Offer flexible pricing options: Consider offering different pricing tiers or payment plans to cater to various customer needs.

5. Monitor customer feedback: Continuously monitor customer feedback to identify trends and areas for improvement.

Benefits

By embracing customer complaints about price, you can:

• Increase profitability: Optimise your pricing to maximise revenue.

• Build customer loyalty: Demonstrate that you value your customers and are committed to providing exceptional value.

• Enhance brand perception: Position your brand as a premium offering with a strong value proposition.

• Improve customer satisfaction: Address customer concerns and provide a positive experience.

Why it works

Customer complaints about price are often a sign of a healthy business. It indicates that customers perceive your product or service as valuable and are willing to pay for it. By understanding the value you provide and effectively communicating it to your customers, you can justify your pricing and maintain customer satisfaction.

Measurement

The effectiveness of your pricing strategy can be measured by:

• Increased revenue: Track changes in your total revenue over time.

• Improved profit margins: Monitor your profit margins to assess pricing effectiveness.

• Customer retention: Track customer churn rates and repeat purchase behaviour.

• Customer satisfaction: Conduct surveys or gather feedback to gauge customer satisfaction with your pricing.

My story

I’m so pleased to share this story as coming from my very first Managing Director forty years ago as it shows how important an influence our leaders have on the future of our world and how simple golden nuggets add value. Which is of course why I share so much. I’ve had the good fortune of learning so much about leadership. Some from some great people and even more from the misfortune of making so many mistakes as a leader myself. My purpose in sharing here is that my thoughts inspire you to be an even better leader and as a result you achieve even more success for your business - and in your life!