Raising Prices…The Right Way!

Are you considering raising your prices?

Many salespeople look at raising prices with a grain of salt, a double-edged sword if you will.

On one hand, raising prices means more earnings and greater profits. On the other hand, it could upset or scare away your current client base.

It’s true, there’s a definite and obvious upside of charging more for your products and services. But, if you lose your current clients in the process, is it doing any good?

The good news is there is a way to raise your prices while still minimizing its impact on your current client base. In fact, there are three steps you can take to increase your chances of gaining all the benefits of a price increase without upsetting your current customers.

[bctt tweet=”Price increases need to be approached strategically.” username=”EngageColleen”]

1) Give Them Notice

Give them six months notice, if you can. You want to give your customers a chance to buy in advance before the prices go up. That way, they can collect stock of your product to help them ease into the new prices. This will also make it easier for them to budget accordingly. They’ll appreciate the gesture!

2) Give Them Options

A “take it or leave it” approach is not a good way to do business. This will drive your clients away quicker than you can imagine. Always have multiple options available so your client can gauge the value of each choice and move forward accordingly.

This is where you must become creative. It may take a little extra work, but your current client base deserves it!

3) Notify Them First

Don’t simply announce a price increase on your website or social media and have your customers hear about it at the same time as the general public. Do your due diligence and have conversations with your current clients about the price changes, before the rest of the world gets wind of the news.

You’ll notice that the general theme in each of these steps is one of respect. A price increase can impact your current buyers in several different ways beyond just paying more. It’s your duty to inform them well in advance, present them with multiple options and ensure that they are on the inside track when it comes to being informed about new prices.

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