We have made a decision to increase our prices in August. We have given it many months of thought and gone over the numbers. Like I have said before, we have a very niche product line, and we have exclusive rights to a handful of our products- so they cannot be purchased anywhere else in the world. At first we priced them to be competitive with similar items from competitors.
However with different FDA regulations etc.. many of the competitors are no longer able to sell their product- and our product has become a very hot item that everyone is buying. Another big factor, is that our company is growing, and we are getting so busy, we have needed to hire additional employees, we are looking at renting a much larger office space with a warehouse- so our costs are going up significantly as well.
Based on market demand, and exclusivity, and now brand and product recognition we have gained over the past 2 years- and our rising costs- we have decided that it is in our companies best interest to raise the prices on our products.
What is the best way to communicate a price increase to our customers. Do we put up a banner ad on our slider saying prices are increasing in August? Do we send out an email? Mention it in our monthly newsletter? Send a letter only out to past customers and not just registered users on our website? Do we offer some sort of membership buy-in for customers to lock in to the 'old rate'? ie- pay $69.99 for a year of being able to purchase the products at the old price? - in some ways I feel this defeats what we are doing- We are also working on a packaging redesign- and I was hoping that would come on the same time as the price increase- however it's not looking like that are going to synch up.