Inflation is forcing you to raise prices. Here's how not to lose your customers
🔄 1. Repositioning: sell for more, but with a reason
Why do your customers buy from you? If it's only price, you're in danger. Add value. A Nairobi café raised prices 15% by switching to a "100% local" offer. Customers accepted because they bought a story, not just a coffee. Identify what makes your product unique. Highlight it. Customers will pay for a story.
📦 2. The format option: cheaper per unit, more expensive per basket
Instead of raising your chapati price by 5 KES, offer a "family pack" of 12 chapatis at KES 550 instead of 600. The unit price drops. The average basket rises. A Nakuru bakery tested a "weekly pack". Result: customers spend 30% more per visit while feeling they're getting a good deal.
💡 3. Communication, the secret ingredient
An Eastleigh trader raised her bras from 500 to 550 KES. Customers left. Why? She didn't explain. Her competitors communicated about raw material increases. They kept their customers. 1 in 2 SMEs that raise prices without communicating loses up to 20% of its customer base. Explain to your customers why you're raising prices, transparently. A poster, an SMS, a WhatsApp post. "We did everything we could to absorb the increases. But we must raise prices by 5% to continue offering you the same quality."
🎯 4. Segment your customers: some can pay more
Not all customers are equal. A regular who buys 5 dozen chapatis a week will tolerate a 2% increase. An occasional who comes once a month will leave at the slightest hike. Offer differentiated increases. Offer discounts for bulk orders. A Mombasa carpenter raised prices 10% for occasional clients, and 2% for regulars. He lost 5% of occasional clients, but his overall margin increased 15%.
🤝 5. Test before rolling out
Don't raise all prices at once. Test on one product, one service, or one customer category. Observe reactions. Adjust. A Kisumu salon raised their wash from 500 to 550 KES for one month. Customers came back. They rolled it out. Testing avoids disaster.
Tip: Transparency pays. Explain your increases to customers. Show them supplier invoices. Tell them you did everything to avoid these increases. Your customers will understand. And they'll stay.
Do it now: Tomorrow, write a communication to your 20 best customers. Explain your increases. One page, humble tone, quality promise. A message that will save your customer relationships.
Sources: KNBS – CPI Reports 2026; Business Daily – Pricing Strategies 2026; HBR – Pricing in Inflation 2025.
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