How to raise prices without angering your customers

Recent events at the Bari Jay dress company have shown owner Susan Parker that presentation is critical when it comes to implementing a price increase. The company decided to eliminate a discount for customers who pay their bills promptly to offset a 10% increase in production costs. But customers were upset by the change, perhaps because Parker failed to explain that getting rid of the discount would allow the company to avoid other price increases. "We only gave them the negative without giving them the positive, so the perception was that we're taking something away," she said.

View Full Article in:

New York Times (tiered subscription model), The

Published in Briefs: