Have you raised price yet?
The Business of Food
by Jennifer Barney
Have you raised price yet?
2-min read
All of the big guys have raised price already. What are you waiting for?
If you successfully pivoted away from overseas ingredients and packaging to avoid supply chain disruptions and instead accepted the higher domestic prices, you’re hoping things go back to normal soon. You’re thinking you can absorb the higher input prices temporarily. But how long is temporarily? Some say you might have to wait until the second half of 2022.
Why? Because domestic inflation raises local prices.
It goes all the way back to the farm. Domestic feed and seeds are more expensive, and labor wage increases are happening regardless of productivity or merit.
Fewer goods at higher prices coupled with labor shortages means your COGS have risen.
It’s not healthy to have your margins suffer. If you are raising funds, investors want to see good margins. Raising your prices is the answer. It can be scary, but focus on showing your value to consumers.
If you’re uncertain how to do this I offer you a wonderful example from Lauren Chew, founder of Love & Chew.
Here’s what this email gets right:
Doesn’t apologize
Does state the $ amount of increase
Tells why
Doesn’t offer a coupon (that would be counterproductive)
Does encourage subscription
Now is your chance. Retailers are already experiencing national brands and category leaders taking price so don’t be shy.
All my best,
Jennifer
The hottest retailer in Chicago and Washington DC for emerging brands is a convenience store. Get Foxtrot scheduled on your go-to-market plan.
I'd love to hear from you - get in touch at jennifer@3rdandbroadway.com