Price adjustments NOW - quibbling costs

Price adjustments NOW - quibbling costs
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Why entrepreneurs in 2025 will no longer ask whether, but only how quickly and how much they will increase

Raising prices has rarely been popular, but never before has it been so easy - and so imperative. Energy suppliers are adding 45 %, suppliers are adjusting tariffs on a monthly basis, salaries are rising because the purchasing power of employees has fallen by almost 40 %.

In this mixed situation decides speed margin, stability and future viability. If you hesitate, you lose. Those who act secure room for manoeuvre for investments, digitalisation and top talent.

Why now? The opportunity meets the necessity

Price adjustments are usually met with scepticism. But in 2025, the playing field has changed: customers are used to price jumps; their reference prices at the petrol pump and in the supermarket rise every week. This reduces price sensitivity. At the same time, inflation, deglobalisation, deindustrialisation and spiralling wage costs are forcing companies to protect margins.

"So the question is no longer whether I increase prices, but only: How quickly? And by how much?" - The conclusion is clear. Those who fail to adapt now will pay twice: firstly through dwindling contribution margins and later through a lack of funds for growth and staff retention.

Two paths to customisation - new customers or all at the same time?

There are two proven strategies.

The first is aimed at new customers. Existing customers retain their conditions for the time being, while each new order is concluded at significantly higher prices. The risk tends towards zero: If the prospective customer cancels, nothing is lost because they were not a customer before. Only when the new price is established in the market are old contracts renewed.

The second strategy treats all customers equally: one key date, one adjustment. Advantage: Price list, communication and controlling remain clear.

Which option you choose depends on the industry, customer structure and negotiating power. The following applies in both cases: A price adjustment is never a price negotiation. The new price has been fixed; it's all about transparency and realisation.

Communication with flair - from A to C customers

The introduction succeeds or fails due to communication.

Customers can be roughly divided into three groups.

A-Partner receive the message in person - ideally during a visit, at least by telephone.

B customers will be informed by telephone.

C-Customers receive the change by e-mail or letter.

If you write to important clients without warning, you risk damaging relationships that are more expensive than any margin.

"A price adjustment is never a price negotiation"However, this does not mean that the process has to be unfriendly.

A goodie defuses the situation: major customers are allowed to top up stocks in advance at old conditions or receive a call-off contract for six months. In this way, the customer feels valued and can calculate.

Justification creates acceptance

Customers accept price increases more easily, if they are well justified.

Statistics, Industry reports, Indices - Anything that makes the increase appear objective increases credibility. It is important to rely on generally recognised sources: Commodity price charts, energy index, wage settlements.

If your own cost increases are presented transparently, the dialogue partner understands that the adjustment is not a "cashing in" but a reaction to market mechanics.

Timing - turn of the year, summer or follow the market leader?

The calendar offers two classics: 1 January or a date in the middle of summer when customers are on holiday.

The timing is even more powerful if you orientate yourself to the leading companies in the sector. If the market leader picks up - follow suit immediately. Often the entire competition is just waiting for this starting signal to adapt their own lists within a few days.

How high? Small steps or a big leap?

There is no formula, only rules of thumb. Several small adjustments generate little resistance, but require repeated communication. A rare, sharp jump is more stressful in negotiations, but afterwards you have peace of mind. Crooked values are more credible: 4.7 % instead of a smooth five, 11.4 instead of ten. Uneven figures suggest precision and calculation.

Experts recommend organising the conversation in this way:

"We would actually have to raise it by 9.6 %, but by optimising the process we were able to limit it to 7.3 %."

The customer feels that savings are shared.

Fear? Statistics instead of gut feeling

Fear is the biggest enemy of any price increase. But it is usually based on gut feeling, not facts.

Studies show that only around three per cent of customers switch providers based on price alone. The vast majority stay if they recognise the value and feel they are being taken seriously.

Those who regularly adjust prices train the team to hold professional discussions. On the other hand, prolonged dithering eats into margins and sends a signal of uncertainty - both internally and externally.

Price adjustments as a culture

Companies that institutionalise price adjustments integrate them into budget and planning processes. The finance department, sales and marketing work hand in hand: sales prepares customers, marketing explains added value, finance calculates margins. This means that pricing is not an emergency tool, but a strategic lever.

Each adjustment also updates the price positioning in the market. Those who create value are allowed to monetise it - competitors observe and orientate themselves.

Hesitation can lead to your own product suddenly being perceived as a cheap alternative, even though the quality remains unchanged.

Conclusion - waiting costs, acting strengthens

Price adjustments are not an option in 2025, they are mandatory.

Those who communicate them skilfully, implement them boldly and justify them clearly secure margins, finance top talent and remain able to invest. Hesitation costs not only money, but also reputation - because price is also a statement about value and self-confidence.

Next step

Which strategy suits your business model?

How do you implement adjustments without jeopardising relationships? We discuss these questions openly in the Jetstream network - with entrepreneurs who don't fear prices, but lead them.

More about the Jetstream Membership

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