It's getting more expensive to do business.

And whether you face direct challenges like spiraling costs for transportation and raw materials, or simply feel the secondary effects, you might find yourself taking a deep breath as you decide whether or not raise your prices.

Invest in your own market research. Any assumptions you hold about your customers won't necessarily hold true, in reality. Get out into the marketplace yourself, talk to your clients and consumers directly, that way you understand their pain points and how they are changing attitudes and behaviours in response to price changes.

Redefine your value. In inflationary environments, customers think in terms of absolute price rather than overall value. In other words, they'll choose a $1.50-cent can of soft drink over one that offers 50 percent more volume for $1.90. Repackaging your product or service to hit key price points might serve you well.

Unbundle and Rebundle. While customers might have appreciated bundled pricing in the past, the most cost-conscious might now consider the chance to select stand-alone products or services. The converse may hold as well, bundle value added services to products and articulate the benefits.

Increase your relevance. You need to persuade customers to cut back their expenditures on other businesses products ... not yours. In tough times, consumers more than ever need and deserve the occasional treat.

Clearly, not all businesses are equally affected by cost/price inflationary pressures.

Commodities are where the pressure is most highly felt. If you as a producer, manufacturer, distributor or retailer add little value before the product reaches the end customer, then you are really vulnerable. Whereas if you are involved with the most exclusive premium brand then price is less of an issue.

Especially challenged are businesses who market of goods and services for which consumers don’t necessarily understand the input costs. The key here is to educate your clients before the price rises and keep in contact.

What's the Point:

Communicate with your clients, apologize for the price increases, but flag them in advance so that they can purchase now, give price-sensitive clients some options, and reemphasize the value you deliver.