12 Ways to Raise Your Prices (and Keep Your Customers Happy)
The first thing that may come to mind if you’re considering raising your prices is your loyal customers. Having to raise rates is a hurdle that all business owners face. However, the phrase “you get what you pay for” is true across every industry. Although you may not want to upset or steer away your customers, have confidence in your decision because, chances are, they will stick by you if you’re their best resource.
While raising your prices can be daunting, particularly if you’re a new business or the only one in your industry that’s doing so, it’s a crucial step to continue to grow your company. Review your finances, current rates and product or service against your competitors to see if your company will benefit from a price increase. Some signs that it may be time to raise your prices include:
- You have more work than you can take on.
- Your competitors charge more than you do.
- Your cost of business is rising.
- You provide a unique product that no other business offers.
- You’ve never increased your prices or the last increase was more than a year ago.
Once you know it’s time to increase your rates, consider the benefits it can have on not only your business, but also your customers. By increasing your prices, you can:
- Increase your profitability
- Distinguish your product or service as better quality (or premium)
- Improve your service or product
- Grow your customer base or improve the quality of existing customers
Let’s explore 12 ways to raise your prices while keeping your customers happy and how businesses have been successful in the past.
Raising your prices doesn’t have to be as daunting of a move as it may sound. Customers are often willing to pay a little more for something if it’s solving a problem or need that they have. It will give your business the opportunity to elevate your customer’s experience, offer better support and it’s a win-win for all involved.
The increase doesn’t have to be drastic either to make an improvement. A change as small as a 1% price improvement can result in an 11.1% increase in operating profit. With a plan and structure in place and the right tips to successfully ease your customers through the change, a price increase can benefit your bottom line and overall company value.