Times change, and mobile storage services get more expensive as each year passes. Remaining profitable means raising prices so that you can stay in business. While you may be concerned about losing customers when you raise your prices, there are some things you can do to ease the transition to a higher rate.
1. Research the Market
You should always keep an eye on the market rate for your services. Knowing what the competition is charging gives you an idea of what the market will bear.
2. Schedule Rate Increases
Whether you choose to adjust your prices quarterly or semi-annually, always have an idea of what you want to raise them to before you make the move. When determining your schedule, be sure to take into account improvements and upgrades you intend to make. Factoring these into the equation can help ensure you have the capital you need for maintenance or expansion.
3. Keep Increases Small and Steady
Incremental changes won’t cause big waves in your business. Rather, small increases will generate a few small ripples that will largely go unnoticed. Small increases prevent sharp jolts that cause customers to start looking for cheaper alternatives.
4. Don’t Sacrifice Market Share for Profit
Market share takes time to build, and while your business may have the market cornered, you can quickly lose your position if you raise prices too high. Instead of seeking more profit, seek to use your existing profits and a slight price increase to expand into new markets. Remember, a slimmer margin within a larger market can generate a considerable profit.
5. Add Value to the Increase
Customers don’t share your profit motive, but they do have a vested interest in the quality and depth of service you have to offer. When you are raising prices, be ready to explain the reasons for the increase and the ways you intend to utilize the additional revenue. By discussing enhanced security upgrades, expanded services, etc., you will be able to diffuse many objections customers may raise.
6. Pair Increases with Promotions
Promoting offers and special deals at existing prices can help you camouflage price increases for new customers. By scheduling the two to coincide, you ensure that new customers won’t notice the price increases while old customers won’t be affected.
7. Negotiate Contracts with Suppliers & Vendors
Negotiating fuel contracts and maintenance agreements can help you mitigate the risk of increases in their prices to your bottom line. By monitoring what they charge for the goods and services they provide your business, you can forecast future price increases. Reviewing this information can help you ease price increases into the equation so that customers won’t be surprised.
8. Be Open and Ready to Explain
Honesty will go a long way towards easing the burden increased prices will cause your customers. Explaining the reasons for your increases in a straightforward, direct manner can do wonders to solidify your reputation with your clients. More often than not, clients won’t mind paying more to a mobile storage provider they trust and respect.
Mobile storage price increases should be paired with increased quality and service. Going above and beyond in the quarter(s) before a price increase can demonstrate that the increase is worth its weight in gold.
Raising prices is an inevitable part of the mobile storage business. When it is done correctly, the transition to the higher rates you charge will go over smoothly. By taking the time to plan for and prepare your customers for the increased rates, you will ensure that you maintain your market share and remain competitive within the marketplace.