For the current enterprises, maintaining the status quo and reducing costs will have an impact on the development of enterprises. Maintaining the status quo means that the profits of enterprises will be reduced or even unprofitable. While reducing costs may seem to solve the problem, saving sources and opening the flow will not be effective in the short term. To maximize the benefits.

For most companies, there are two main types of price increase strategies:

Tentative price increase

Some products went up early. In the case of costs that can not be reduced, enterprises in order to reduce the unpredictable problems caused by price increases, in order to be safe, some products can be adopted for the strategy of tentative price increases.

First of all, enterprises should sort out the product line, and then divide these products into two categories: one is sensitive products, one is insensitive products. The so-called sensitive products are the daily consumption products of consumers, but also the volume products of enterprises, low prices, large sales, consumers pay special attention to price, and consumers of such products are not loyal enough. The so-called insensitive products are a consumer group composed of consumers with high consumption power, who have high brand loyalty. At the same time, the products chosen by such consumers are bound to be relatively niche products. Due to the characteristics of high quality and high price, the products meet the psychological needs of consumer groups. Target consumer groups will not change their consumption habits because of price changes, so these products are called price insensitive products. When the enterprise determines these two types of products, it can tentatively raise the price of insensitive products. Because these products face a small consumer group, even if the consumer consumption transfer after the price increase, it will not affect the overall cash flow and overall operation of the enterprise.

If the market is relatively stable after the tentative price increase, you can proceed to raise the price of other products.

Follow up

In the face of increased costs, especially when important factors of production (such as the price increase of raw materials), enterprises can follow the price increase of competitors. Although this strategy is passive, but the risk is relatively small, when all enterprises are faced with increased costs, and then began to increase prices, small and medium-sized enterprises can take the method to follow and integrate into the changes of the market. However, following the price increase also faces another problem, if the competitors' price increase strategy is well prepared, it may cooperate with relevant promotional activities, advertising, channel cost support and other marketing elements, if the company does not carry out comprehensive planning, just follow the price, it may be affected by competitors, and even the ultimate failure of the price increase, lost the market.

After determining the decision of price increase, enterprises can choose different price increase methods to implement:

Method 1: One step in place, price increases across the board

If the brand influence of the enterprise is one of the top two types in the industry and has the image of the industry benchmark, under the influence of the market environment, the relevant products in the market have aroused the general attention of consumers due to the increase in costs, and even the fact that consumers have to accept the case, you can through a one-step method, the price of the whole line of products.

The advantages of the price increase of the whole line of products are strong and crisp, due to the influence of its brand, consumer recognition is high, affected by the entire industry environment, its one-time price increase across the line, consumers will also accept. But the price increase across the board is also easy to cause the overall sales decline in the short term, consumer consumption transfer phenomenon, in order to prevent the occurrence of such phenomenon, enterprises must do a good job of preparation before the price increase: 1, public opinion work: let the price increase reasons more sufficient, can divert the attention of consumers; 2, the supporting measures of the market: let the behavior of price increases have more support, such as promotion, can let consumers accept the reality of the market in the short term.

Method 2: Step by step, different products, different price increases, different price increases

This is a safe price increase method, through the tentative price increase of different products, if the recognition of consumers, market sales are not affected, you can continue to carry out appropriate price increases on other products. In the whole process of price increase, it is necessary to complete the price increase step by step:

Step 1: Product classification. The sensitivity of various products is studied and classified by research.

Step two: Raise the price. According to the sensitivity of the product classification, the price of the product is sorted in order.

Step 3: Price increase. Each type of product has a different price positioning in the minds of consumers, beyond the consumer's psychological expectations of the price, consumers will look for alternatives, so the price increase of each type of product should be determined according to the consumer's sensitivity to the price.

Step 4: Price increase time. The interval of each kind of product price increase time is the key to the success of its price increase, how to grasp this time degree? Judging methods: First, the first round of product price increases after the performance of the market, if the market does not appear large fluctuations, it indicates that consumers recognize the price increases, you can carry out the second round of product price increases; If there is a large market fluctuation, we should observe the market performance and find the reasons until the market is relatively stable, and then carry out a second round of price increases. In short, the choice of price increase time will directly affect the consumer's decision. For example, price increases in the peak season of the market are not as good as in the off-season.

The current situation that enterprises are facing is that inflation continues, consumption is relatively weak, costs are increasing, what method to take to deal with the changes in the market, to maintain the power of the development of enterprises, price increases are only one of the methods, enterprises only through the consistent behavior with the market, it is possible to develop in the uncertain market environment.