Most SMBs Have One Instinct When Costs Rise: Raise Prices
That reaction can backfire—fast. Especially when it hits loyal, long-term customers who feel blindsided.
“Raise your prices by 10%, then give a 5% discount. You’re splitting the cost with your customer, and everyone feels good.”
— Kurt Kunselman, Co-Founder, CustomBooks™
It’s not just clever psychology. It’s smart economics. You're managing perception, protecting your brand, and still preserving margin.
Why Blanket Price Hikes Hurt
When customers don’t understand the reason behind a price increase—or if it feels sudden and unfair—you lose trust. But if you gradually roll out an increase with options and transparency, they feel respected, not squeezed.
The Discount-Without-Damage Strategy
In volatile markets, pricing feels like a tightrope. Raise too fast? You lose volume. Wait too long? You lose margin.
- 📈 Adjust pricing to reflect new landed costs
- 🎁 Layer in time-limited discounts or loyalty perks to soften the impact
- 🧠 Communicate clearly and proactively
You're not hiding the price hike—you’re anchoring it to logic and value.
The Role of Smart Inventory Accounting
Discounting without knowing your real costs is dangerous. You need visibility into margin per product to know what you can afford to offer.
CustomBooks™ helps with:
- ✅ Real-time SKU-level margin visibility
- ✅ Accurate landed cost tracking
- ✅ Clear financial data to make confident pricing decisions
A Real-World Example
You import products pre- and post-tariff. The pre-tariff stock has a lower cost basis. Instead of applying a blanket price hike:
- Raise your base prices incrementally
- Offer a time-limited 5–10% loyalty discount
- Use messaging like: “We’ve held prices steady by leveraging older inventory. Increases begin Aug 1 due to higher incoming costs.”
Result: You maintain margin, reduce churn, and build trust.
Strategic Takeaway
Discounting isn’t weakness. It’s leverage. When rooted in accurate cost data, it becomes a pricing advantage that protects customer relationships and your bottom line.
🔍 Ready to Price Smarter, Not Harder?
Explore how CustomBooks helps you build a pricing strategy rooted in real data—not guesswork.
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