Let’s face it. In business once you have established rapport with your customers, no one wants to break the news of price increases to them. This is particularly true with clients that have used your company’s products or services since its inception. Truth be told, raising prices can lead two one or two possible outcomes:
A. Losing customers….
B. Retaining the loyal customers that find quality in the products and services you offer…that don’t mind the price increases
5 Ways to Raise Prices without Losing Clients
As they say in the sales and marketing world, a customer won on price will be lost on price. If you are afraid of raising prices in fear of losing clients, here are 5 Tips that can help get you over that hurdle:
Tip 1: Be Honest
Just be yourself, be confident in the value you provide, and tell the truth. Tell your clients what’s changing in your company, how it affects the prices of your products or services, and how the price increase is actually a good investment for them. Lay out your terms, and if they have any questions, answer them promptly, honestly, and sincerely.
Tip 2: Stand as an Authority
How much are general physicians being paid? Well, how much do you think is Dr. Oz being paid? Although both of them are experts in their field, the difference in their salaries is vast. Why? Because Dr. Oz isn’t only knowledgeable and experienced; he’s also popular. He’s basically a celebrity in his own right. If you can establish yourself an authority in your field—the person everyone can rely on in a given niche—and if you can spread the word about your expertise and experience, clients won’t protest after a slight increase in price.
Tip 3: Make a Sweeter Deal
The easiest way for your clients to accept a price increase is when they get additional value from the deal. By adding a new feature, offering exclusive information, or giving them priority when it comes to questions, complaints, and suggestions they send, you can make the deal sweeter and desirable in your client’s eyes.
Tip 4: Target More Affluent Clients
Another easy way to raise prices is to target your more affluent existing and prospective clients. These clients are the people who can and will pay more if that means that they will get better features and treatment. You can charge them double, and they will still be willing to take your product or service. Given that they are paying premium, however, you have to make sure that your service offerings are top of the line.
Tip 5: Give Your Clients More Options
There are affluent clients, and then, there are the not-affluent clients. Rather than letting clients go, you can offer subscription based services — or opt to offer lower-priced options (where applicable). The caveat is that they will need to order a minimum number of products or work hours. The output may also be less stunning than what those who pay premium get.
As you can see, there are a lot of ways to raise your prices without losing clients. Try any of the methods I shared with you today, and tell me how it worked for your small business. Make it a great day Peeps!