Every business owner is facing pressure to lower their prices. It is a compromise they have to make to stay in business.
If you want to successfully run a business, you cannot stick with one price and you certainly cannot have them maintained for a long period of time. You will have to increase them one day or another to stay in business.
But how can you lift the prices without losing customers? Here are some ideas that can help:
Offer them a bonus
When you are upgrading the price, it makes sense to upgrade the product too. Let them know that they are getting a greater value. Yes, it costs more now but your customers will be getting a better product. Don’t forget the new price should include extra cost of enhancing the product as well as your profit margin.
Give advance notice of the rise in prices
When you are giving advance notice to your customers, they will feel appreciated. Letting them know in advance is a gesture that says you value your clients.
There is another advantage of giving advance notice. Customers end up buying more items before the prices go up. Some companies use this strategy as their primary way of increasing sales. Chances are your potential customers are procrastinating. However, as soon as you announce the prices are rising, they are willing to make a purchase.
Explain why you are rising prices
It is always good to explain to your customers why you are raising your prices. Let them know how the additional funds are going to be used each month. Even if your expenses are rising, you have to explain to them why it is happening. In case you are going to spend the additional money on your product, explain to your customers how these additional features are going to benefit them.
As your business grows, the worth of your product should grow as well. When you are rising prices, you don’t have to apologize. All you have to do is explain how the higher prices will allow you to serve your customers better and simply move on.
If you are able to successfully prove your worth, your customers will not walk away.
Don’t try to hide the fact that you are rising prices. Let your customers know that you are moving with the market. As your experience and expertise have increased, it is time for you to increase your prices.in fact, it is fair to increase your price. If possible, offer them a discount on bulk orders. This will make them realize that you still care about them.
Expect to lose some customers
When you are rising prices, you are definitely going to lose some customers therefore, you have to be prepared. But don’t lose hope, you will definitely attract new customers who are willing to pay a higher price for quality products or services. Those are the customers whom you want to keep.
Along with increasing the prices successfully, you also must know when it is the right time to increase prices.