Dealing with Royal Mail price rises

[oliverstoychest]

As we know Royal Mail are putting there prices up on Monday. So I’m asking how do you deal with the price rise? Do you put your product prices up?
Does it force some product lines to be discontinued?

Love to hear your thoughts and views.

 

[Mr D]

Put prices up? Yes when costs have gone up. Royal mail may well be just one of the cost increases you get in a year. New stuff gets changes made from late February / early March, older stuff gets changed from January onwards.


Never had stuff discontinued by a cost change.

 

[Chris Ashdown]

Its a easy trap to fall into in thinking you will lose customers if you put up your prices, but in reality a small price increase will normally make little or no difference unless you are in very strong competition like selling on EBay

 

[Mr D]

Its a easy trap to fall into in thinking you will lose customers if you put up your prices, but in reality a small price increase will normally make little or no difference unless you are in very strong competition like selling on EBay

Even selling on eBay you can do price rises.

Your competition either increases their prices over time too or else reduces profits in order to absorb costs.

 

[Chris Ashdown]

True but it is one of the largest markets where even pennies can make a massive difference to a sale or staying in stock, many ebayers don't look for service just lowest price especially on low cost items

 

[Mr D]

True but it is one of the largest markets where even pennies can make a massive difference to a sale or staying in stock, many ebayers don't look for service just lowest price especially on low cost items

Yes I understand some sellers chase those customers.

I don't bother - I go for a different part of the buying demographic.
Each to their own.

One item I have a range of, cheapest seller is 50.5% of my price. I daresay he'll sell far more than me. If his costs were the same as mine I'd be making 20 times his profit per sale. And I do sell a lot of the items.

 

[FD Capital]

Its far easier to put your prices up by a few % each year than to try and hike them by 10% or more when you later on realise your profitability has taken a dive. Your competition will be doing the same, as long as your service levels are good your customers will accept and understand.

 

[Jasondb]

I think it depends on your product, if it is price sensitive such as an item priced at £1.99 or £2.99 to prevent going up to the next pound. Then it might make sense to reduce the volume or quantity in a product, I often notice re-packaging helps this go unnoticed for a while.

Makes me think back to those adults that looked back at the Wagon wheel confectionary item with shock.