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Tuesday, January 6th, 2009
articles.php?which=MaybeThereIsAGoodWayToTellCustomersYoureJackingPrices
Maybe There Is A Good Way To Tell Customers You're Jacking Prices.

Everyone loves to hate on airlines these days for good reason: they're cutting amenities while jacking up ticket prices. But this week when Jet Blue Airlines announced that they had to make some cuts, they took a different approach to the matter. Instead of simply unveiling a new fee for luggage or announcing that they're now charging for water, they said that they're making an eco-friendly price cut. In lieu of handing out freebie pillows and blankets, Jet Blue says that they're now charging for an environmentally friendly, reusable pillow and blanket kit.

So for this week's survey question, we asked whether that was a more palatable way to announce what's frankly yet another new airline fee. The result? Per usual, you were split. Reader Jessica suggested that they should forget trying to package fees nicely and should just tack any extra costs on to ticket prices. She makes a good point:

"I would not even know if my ticket was roughly $50 more at the time of purchase than it normally would have been, especially due to gas prices."

However, the question is exactly how high they'd have to raise ticket prices to cover all their losses. Because travelers will notice if their fares went up by $200. On the flip side, reader benpirie says that he thinks Jet Blue found an interesting solution to the problem of telling your customers that you're raising prices/levying new fees/cutting services:

"Pillows and blankets would seem to be a rare place where cutting costs, promoting a green agenda, and addressing a customer concern meet. I think it was a thoughtful answer to a problem that many carriers have taken less delicate approaches to, such as charging for pretzels or checked baggage. It goes without saying, but it's much easier to sell a sensible, well-reasoned idea."

If there's a lesson in this for small business owners, it's how to deal with a situation that nearly every company, big or small, is facing right now in this economy: telling your customers that prices have to go up or that you're cutting services. But presenting it in a reasoned way—and one that may actually appeal to your customers—is one way to at least (sort of) soften the blow.

jetblue

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