APPRENTICE star and West Ham United vice-chair Karren Brady answers your careers questions.
Here, Karren gives her expert advice to a reader who is worried that increasing prices may harm her business.
Q) I run my own small catering business and am doing fairly well, with regular bookings from local firms, plus some great word-of-mouth business from school-gate parents.
However, when I launched, I made sure I kept my prices low to bring in plenty of interest, but now, with the cost of living still on the rise – especially when it comes to food – I need to put them up if I want to make more of a profit.
How do I communicate this to my loyal customers without damaging my relationships with them and potentially losing the regular bookings that I rely on?
Emma
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A) Raising your prices isn’t a sign that you’re being unreasonable – it’s often a necessary step to ensure your business remains sustainable and continues to thrive.
The key is to handle it professionally and with confidence.
Start by giving your clients sufficient notice – price increases are far easier to accept when they’re communicated clearly and in advance.
Explain that any existing bookings are unaffected and set out when your new prices will come into effect.
A simple explanation is enough: rising ingredient and operating costs, combined with your commitment to maintaining the quality and service your clients expect, mean a modest adjustment is necessary.
Framing it around protecting quality, rather than covering costs, helps clients understand the value you continue to offer, while reassuring regulars that you’ve worked hard to keep any increases to a minimum.
Lead with appreciation and let your clients know you value their loyalty. Everyone works to get paid, so don’t feel guilty about charging what your service is worth.
- Got a careers question for Karren? Email bossingit@fabulousmag.co.uk.
