Although, some business owners may be apprehensive at the thought of increasing prices, it is an inevitable and necessary part of business survival.
While most customers may not be thrilled by the announcement of a price rise, there are ways to approach a price raise for a more favourable reaction.
Here are the best tactics for increasing your prices without losing customers:
Timing is crucial
Before raising prices ensure your customers are satisfied with your products or services. In the months leading up to a price change, over-deliver to demonstrate the value you provide is increasing more than the price.
Inform your customers
Give your customers plenty of warning before new prices come into effect. Make sure you are honest, upfront and explain the reasons for the new prices. If you are spending more money on your product, ensure you explain how the additional features will benefit them.
Customers may be more willing to accept a price increase if you add features or improvements to your existing products or services. Consider redesigning packaging, bundling products or adding new services.
Provide a lower-priced option
Introducing a lower-priced option provides frugal customers with an option to compare value between products and services rather than focusing solely on the price increase.
Consider offering discounts to loyal customers ahead of the coming increase. This provides frequent customers with an opportunity to take advantage of your current prices, keeping your price-conscious customers satisfied.