Is working to make more profit contributing to greedflation right now? Is that wrong?
Well that depends doesn’t it.
If you’re using the current inflation rate as an excuse to increase prices above inflation to increase margins and not providing any extra value, then in my opinion, yes, it’s greedy and it’s contributing to inflation. And that’s not good.
Like the insurance companies that increased my premiums (premia?) by more than 50% this month. What possible justification is there for that? I can see their costs will have increased and the cost of any claim that may be made. But will those costs really have increased by an average of 50%? The CEO’s bonus maybe, but not other costs.
I’d love to hear from insurance companies about this because neither of the companies I dealt with wanted to engage in a discussion about it and explain. And why would they when insurance companies like Zurich and others are making higher profits and proposing higher dividends to shareholders. Aviva, for example, reported a 35% increase in operating profit in 2022 and instigated massive returns to shareholders, including a £300 million share buyback started in March this year. This is the very definition of greedflation.
Needless to say, I didn’t renew my policies with my previous insurers.
Let’s be clear, I’m not against making a profit. Even a large profit. But only if that profit is offset by the value being provided to the customer. I’m not against increasing profit margins, even now, during a period of inflation. But only if that increase is at least matched by an increase in value to the customer. It takes a lot more creativity to achieve a positive value transfer – the kind of creativity that might warrant a 50% increase in CEO pay… but I saw no sign of added value being offered by the insurance companies.
I admit, in a time of rising inflation and falling demand, it can be challenging to know how to add value to your offerings without increasing your costs or contributing to the current climate of “greedflation.”
Are you finding it a struggle to balance increasing prices with providing value to your customers? Well, fear not! We have compiled 13 tips for adding value to your customers so that you can increase prices without resorting to unethical practices. We were going to make it seventeen, but that’s just greedy ;), so we chose the best thirteen.
Inside this easy to use compilation, you will find a step-by-step guide to adding value to your customers and creating a loyal customer base. Some of the tips include focusing on customer experience, building trust through transparency, and creating a sense of community around your brand. By implementing these strategies, you can differentiate your business from competitors, build customer loyalty, and justify price increases without sacrificing your principles.
One of the most important factors in increasing prices without contributing to “greedflation” is providing clear and transparent communication with your customers. This means being upfront about pricing changes, providing detailed information about the value of your offerings, and listening to customer feedback. Are you listening, insurance companies?
By engaging with your customers in a respectful and open manner, you can build trust and show that you are committed to providing them with the best possible service.
Other tips include focusing on quality over quantity, building partnerships with other businesses, and investing in employee training and development. By creating a strong brand identity and investing in your employees, you can build a business that is known for its quality and value.
Don’t let the current climate of “greedflation” discourage you from adding value to your customers and increasing prices. With our guide, you will have access to 13 proven strategies for building customer loyalty, increasing profits, and creating a business that is both ethical and successful.
You can get your hands on the guide “Thirteen Ways to Add Value and Increase Profits Ethically” here, and start adding value to your customers today.