Common Reasons for Price Increases

Most customers expect that the cost of their beloved products won't remain stagnant
forever. However, if a competitor's prices are not increasing, this potentially puts you at risk
for customer churn. You must handle a price increase quickly and authentically to ensure
that your customers understand the situation and are willing to stick through it.

Some reasons companies increase prices are:

 Production Costs: Costs to produce and distribute your products play a key role in pricing. If
those costs increase, you'll need to raise prices to accommodate the added expense.
 Material Costs: Similarly to production costs, the price of materials can also go up which will
affect your bottom line. Any adjustments to upgrade the quality of your product will impact
pricing as well.
 Industry Trends: If you're not a first-mover into your industry, chances are you'll need to
keep up with competitors to make sure your business stays relevant. Conduct a competitive
analysis (if you haven't already) to stay on top of industry standards. If you find deficiencies
in your current business model, bringing your company up to speed may result in a price
increase.
 Growth: Growth is what most businesses strive for and it can also present an opportunity to
increase prices. Should you choose to increase due to growth, it's important to offer existing
customers benefits or new services to offset the negative effects of an increase.

Before deciding on any price changes, sync with your sales and customer service teams to
make sure everyone is on the same page about whether the increase is justified and how to
best communicate this change to customers.

Price Increase Justification

This conversation is never easy to have with customers. After all, who wants to hear that the
product your business relies on is going to cost more?

No matter how well you communicate this change, your customer service team should
expect at least a few negative reactions. If you aren't seeing anyone complain about higher
prices, then they're still probably too low. This leaves it up to your discretion whether you
want to increase revenue or maintain customer satisfaction.

If you're experiencing pushback from your customer base, it's helpful to sync your sales and
customer service teams. Both departments should align when it comes to how you
communicate this price change. It will provide customers with consistent information as they
speak with both sales reps and service reps.

In general, the best approach your team can take is assuring customers that the increase
will help maintain product quality. Customers who are dependent on your products will be
more understanding of this reasoning and will want you to maintain the high quality that
they're accustomed to
In the case of SATECO Stairs project these are the main reasons why it has price increase:
1. Change in Quantity and Volume of Materials
2. Change in Design of Spiral Stairs
3. Change of material type and specifications