It happens to us all at some time or other; you realise that your expertise and experience is worth far more than the prices you're charging. Or maybe you’ve absorbed so many increased costs in order to stay competitive that your profit margin has diminished.
It's time to raise your prices if you want to stay in business.
But the decision to increase your prices can cause a great deal of stress. How will your existing customers react? They have become accustomed to paying a particular fee, they've budgeted for your services or products and now they’re faced with paying more.
Here are four tried and tested ways to handle a price increase without losing many customers.
Of course, no matter how sensitively you handle the news of your price increase, you may still lose some customers - especially those for whom price is everything. Accept this - you can’t please everyone!
Perhaps the best advice I can share with you is to charge a fair price in the first place. If you start off charging a rock bottom price to bring customers through the door, it won’t be long before you become resentful that you’re delivering so much for so little. Trying to remedy this situation by dramatically putting up your prices will just alienate your customer base.
Copyright © 2015 Dee Blick, Fellow of The Chartered Institute of Marketing and an Amazon #1 bestselling author of The Ultimate Small Business Marketing Book and The 15 Essential Marketing Masterclasses for your Small Business.