How to Survive Your Business' Rising Prices Naked and Fearless

You are committed to first avoid, at all costs, passing on price increases to your most important business partners and customers.

You have strengthened your current customers.

You have created new sources of income.

You broke new ground in marketing.

You have reduced overhead.

You have created a synergy to share expenses.

You have restructured the compensation.

You've set up the automation.

You have reported your own pay.

And it still doesn't work. You are still losing money.

What now?

This whole series has been about avoiding, at all costs, passing on price increases to your most important business partners and customers. But nothing else worked. How can you pass on raises without hurting relationships or losing customers?

Get naked.

Ultimately, it comes down to trust. Your customers and business partners must be able to believe, beyond doubt, that you are not using the current landscape to take advantage of it or looking for a clever way to increase your margins. Transparency is key to building trust, so be prepared to show them the evidence, numbers, and improvements you've made before you come see them.

Do not be afraid.

Now you've done the heavy lifting. You've added new revenue, innovated your supply chain, and streamlined the workforce. You made the difficult choice to exhaust all options to avoid passing on the raises. Now you know unequivocally that you need to raise your prices.

You can confidently tell your story, share the facts and demonstrate what you have done to invest in the business and the partnership. You don't need to worry or be afraid when you're ready and have nothing to hide.

Play small ball.

This is not an opportunity to earn more margin just because you don't want to come back with another price increase in six months. It's an incredibly common practice, and retailers are wary of it. Instead, raise prices only when needed, and be sure to qualify, quantify, and demonstrate that you're asking only for the bare minimum.

Come up with solutions.

This is an opportunity to move from a transactional relationship to a strategic partnership. How do you do this? You present solutions. Once you've explained the numbers, invite a conversation about how to create a win-win outcome. Collaborate on ways to work together to offset the increased costs you're both trying to avoid, for example:

Add more of your products so that revenue gains on your end mitigate some of the cost increase and allow you to pass on a smaller increase, or not at all? Leverage their relationships to help you negotiate better terms with your suppliers or even help you find new ones? Change your provider contract from Prepaid to Collect, eliminate discounts and rebates, or switch from private label to national brand?

Your business partners are much less likely to default if they feel you are working with them. Champion both parties and the business as a whole, not just your own finances.

Plan to give back.

What about when prices stabilize eventually? Be prepared to offer a price drop. Yes, it's almost unheard of - and that's why it's impactful. Make it clear to your clients that your commitment to transparency means going up when you absolutely have to and going down when you can. If you want them to ride the tide when it comes in, you have to be prepared to ride it with them on the way down as well. Anything other than that comes across as greed rather than need.

Be humble.

It's still not up to you whether customers will accept a raise and pay more for your products. Be confident, knowing you have...