So you’ve done the math, you have considered your perceived value and you have decided it’s time to raise your prices. Now you want to know how to go about doing that without losing sales or upsetting clients.
There is no way to guarantee some of your customers won’t be upset when you raise your prices, but if you are confident in your prices then there is a good chance that it is time to be looking for some new clients.
There are two basic ways to raise your prices;
- Just do it!
- Let people know that you are about to do it.
Option 1 – That’s right – just up them!
You might be surprised to learn, but no one is paying as close attention to your business and your prices as you probably feel they are. You might be expecting a tirade of emails and comments on your price increases but in reality that is unlikely to happen.
If you are raising your prices by a a small amount most people won’t even notice you have done it.
If you don’t believe me, why not try testing it by increasing each of your current prices by $1 or so.
Think about that for a moment, as a consumer $1 is unlikely to change your buying behaviour. But as a business owner consider the number of sales you made last month, was it 10 pieces or 100 pieces. What would it mean to your business to make an extra $10 a month, or $100! Even at the low end that sounds kind of exciting right?
So, why not head over to your sales pages and your etsy shop and put everything up!
See if anyone even notices.
If you are met with resistance from existing clients have a simple statement ready which explains the price rise was necessary because you are taking your business seriously and you are excited to build a sustainable project so you can keep doing the work you do.
Make sure you don’t get defensive or apologetic and try not to be insulted by people’s comments. If people are really put off by the increase, it might be that they are not your ideal customer.
Your second option is to inform people BEFORE you raise them
This can be a great way to explain your new pricing and make some immediate cash flow all at once.
Use your databases (Facebook followers, email subscribers etc) and let people know that you will be putting up your prices on a certain date in the future. I would suggest that this be no more than 3 weeks.
Warning people that the prices are going up SOON allows them to buy your products or services at the current prices and might give you a quick injection of cash.
Do what you can to make an exciting event out of it, invite people to be excited for you. Explain that your business is growing up and your prices need to reflect that.
What about the naysayers?
Are you are sitting there thinking; “Well, that all sounds good, but people already complain about my prices so I can’t possibly put them up?”
Let me tell you a secret.
If you double your prices, there will be people tell you it is too expensive. The thing is, if you halve your prices, there will STILL be those people who tell you it is too expensive.
You need to remember there are much better ways to differentiate your business in the marketplace than competing for the lowest price and you deserve to get paid for your work.
Are you ready to up your prices? By how much?
How will you go about it?
Elle loves few things as much as coffee and her three kids – but entrepreneurship and empowering women are certainly up there. Working for the past eight years as an online business coach, Elle has helped countless women build more strategy and profitability into their business, allowing them to do the work they love.
Currently working as an Online Business Manager at ElleRoberts.me, CEO and Community Champion at The Artful Business Community and now Editor in Chief here at The Worth Seekers – Elle likes to keep busy.
Her passion for personal finance and women’s financially literacy comes from a place of person struggle as well as experience working with countless clients over the years and watching them face the same issues over and over again when it comes to deal with money.