Cuyana sent out a price change email in February and sales have been stable since then, Gallardo said. But that was months before inflation reached its latest peak in June, when prices rose 9.1%. Should the company repeat this process? “Hyperinflation is one thing you can never plan for,” she said. “So if it continues and costs rise even further, we will have to think again.”
On a positive note, it may not be so difficult next time. Hem founder Petrus Palmér said: “For us, the net effect of the price increase was slightly positive. What we lost in order volume we made up for in total sales volume.”
Many customers also shrug their shoulders. “I don’t like when prices go up, but I’ve come to expect it,” said Maricela Peña, who works in human resources in Minneapolis. It doesn’t make much of a difference to me how brands communicate about price increases, and if I really like a particular product, I’ll probably stick with it.” “I haven’t gotten to that point yet,” she added.
San Antonio pathologist Bridget Hershap agrees. “I get emails about price increases, but I mostly ignore them and forget about them until I shop around and find the total is more than I expected,” she said. Still she doesn’t stop. She recently purchased a pair of Sarah Flint shoes, knowing that the brand’s price had gone up a few months ago. “I try to be more mindful of what I’m buying in general rather than excluding specific brands that have become more expensive,” she said.
According to Professor Zhang, transparency around price increases is not as dangerous as some companies fear, and if anything, it may offer another opportunity to appeal to customer loyalty. “You build a relationship with your customers by showing them that you are sincere,” he explained. “You’re saying, ‘We’re all going through this together.'”