Channel Eye
KPMG
  • Home
  • Business
    • Appointments
    • Data Protection
    • Digital & Technology
    • Environment
    • Features
    • Financial Services
    • Interviews & Profiles
    • Leadership
    • Legal & Professional Services
    • People
    • Property
    • Retail & Hospitality
    • Transport
    • Wellbeing at Work
  • Lifestyle
    • Arts & Culture
    • Charity & Community
    • Education
    • Food & Drink
    • Health & Wellbeing
    • Home
    • Leisure
    • Travel
  • Events
    • Events in Jersey
    • Events in Guernsey
    • Events in Alderney
    • Events in Isle of Man
    • Virtual events
    • All events
    • Past Events
  • Directory
  • Location
    • Jersey
    • Guernsey
    • Alderney
    • Isle of Man
  • Advertise
  • Subscribe
No Result
View All Result
Channel Eye
No Result
View All Result
KPMG
Home Business Leadership

Ask the Business Coach: When do you switch from absorbing increased costs to passing them on to your customers?

November 10, 2021
in Business, Features, Guernsey, Isle of Man, Jersey, Leadership
Share on LinkedInTwitterFacebookEmail

Channel Eye has joined forces with Royston Guest, leading Business Growth Coach and CEO/Founder of Pathways Global, in our column, ‘Ask the Business Coach’

Business Growth Pathways logo

Price increases put pressure on everyone. Small to medium-sized businesses especially feel this pressure because they don’t have significant revenue cushions to absorb costs. They have limited negotiating power to get better prices and are contending with rising labour and energy costs. More often than not, a price rise is needed to stay in business.

The big three takeaways!

  1. Your margin will determine whether you can absorb or pass on costs
  2. Identify your permanent versus temporary cost increases
  3. Explain the why when communicating any price increases

Episode timestamps

  • [1.30] The margin you make will determine whether you absorb some costs before passing them on to your customers or whether you have to pass them on immediately.
  • [2.04] Evaluate your permanent and temporary costs. Doing so will help you understand whether you can reduce your margin in the short term, as you don’t want to hurt the customer relationship or whether you will need to pass them on to the customer immediately because the increased cost is here to stay. In other words, how long are you prepared to run a reduced margin to cover the additional cost.
  • [2.55] If you pass on price increases to your customers, ensure you are transparent and proactive in your communication. State why you need to increase your prices – be open and honest.
  • [3.55] By increasing your prices, you will create a choice point. Your customers will choose to stay with you because they value the relationship, or it will trigger them to look for an alternative, cheaper provider. If they decide to leave, you will have communicated to them in the right way to enable them to make an informed choice.

Do you have a question for the Business Coach?

Send your questions to askthebusinesscoach@channeleye.media


Missed a previous episode? Catch-up and watch the series here.

Tags: #AskTheBusinessCoachGrowth Pathways
ShareTweetShareSend
Royston Guest

Royston Guest

Click here to see all of Royston's articles and here to find out more about Royston and Pathways Global

Related Posts

ATBC Ask the business coach
Leadership

Ask the Business Coach: Three key challenges business leaders are facing in the current climate

September 13, 2023
ATBC Ask the business coach
Leadership

Ask the Business Coach: What are your thoughts on the importance of brand reputation?

August 16, 2023
ATBC Ask the business coach
Leadership

Ask the Business Coach: Is it just me, or are customers more demanding than ever?

August 2, 2023
Next Post
Jersey next states member

Watch: Support and advice for potential Jersey election candidates

List your event
Channel Eye
Caring Cooks

Be the first to know​

Subscribe to the essential islands business news, direct to your inbox every morning​
  • Home
  • Business
  • Lifestyle
  • Events
  • Directory
  • Privacy Policy
  • Contact
  • Advertise
  • Subscribe

© 2023 Channel Eye Limited

No Result
View All Result
  • Home
  • Business
    • Appointments
    • Data Protection
    • Digital & Technology
    • Environment
    • Features
    • Financial Services
    • Interviews & Profiles
    • Leadership
    • Legal & Professional Services
    • People
    • Property
    • Retail & Hospitality
    • Transport
    • Wellbeing at Work
  • Lifestyle
    • Arts & Culture
    • Charity & Community
      • Macmillan
    • Education
    • Food & Drink
    • Health & Wellbeing
    • Home
    • Leisure
    • Travel
  • Events
    • Events in Jersey
    • Events in Guernsey
    • Events in Alderney
    • Events in Isle of Man
    • Virtual events
    • All Events
    • Past Events
  • Directory
  • Location
    • Jersey
    • Guernsey
    • Alderney
    • Isle of Man
  • Advertise
  • Subscribe
  • Contact

© 2023 Channel Eye Limited

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.

Be the first to know

Subscribe to the essential islands business news,
direct to your inbox every morning
Thanks - I am already subscribed