Are you seeing pressure on your pricing model? Perhaps customers are looking elsewhere or reducing orders or simply asking directly for a price reduction?
This may not be simply down to your service or the perceived value of your offering, but simply the external factors impacting many business owners that is forcing us all to look at our day to day costs.
Many businesses are seeing their cost of sales increase. We have heard in the press the likely impact of the increased cost of materials like cotton, metals or food supply. Additionally we have the ever rising fuel costs. So most people are facing increased costs, and with the VAT rise recently increasing some sales prices already and our margins being continually squeezed, as business owners we feel it is difficult to raise prices in the current climate.We recommend that you keep good communication with your customers and understand the factors impacting their business. Then if they come to speak to you, it will not be a surprise and you will be prepared for your response instead of being caught on the spot!
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