There will probably come a time where your business will have to consider the idea of raising prices. It might be unavoidable (due to increases in cost of supplies or something along those lines), or it could be that you simply feel your services and products are worth more than you’re currently charging for them.
Whatever the reason, raising prices without losing customers or decreasing the amount of quality leads you get is always a concern. A lot of businesses are so afraid of losing customers that they just never get around to it, preventing them from maximizing their profits.
Here are some tips to help you implement price increases without killing your business.
- Educate customers about your price increases—You don’t want your customers to think you’re just being another greedy company by boosting your prices. Educate them on the reasons for your price increases (e.g. operational costs have increased, economy, etc.). Don’t be defensive about it. just be honest. This way, they’ll be more understanding.
- Be confident—Fear is the biggest reason businesses don’t increase their prices. But if you’re confident in the quality and value of your products and services, you shouldn’t be afraid. As long as your new prices are justified and seen as a good value in your customers’ eyes, you have nothing to worry about.
- Consider raising rates only on new customers—Perhaps you could reward your loyal customers by allowing them to stay on your old pricing plan, whether temporarily or permanently. This will further strengthen your relationship with existing customers, and it gives you an opportunity to test out different price increases with new customers and prospects.
Have you ever raised prices? Did you lose any customers? Share your experiences in the comments section.