Needing to raise your prices is typically good news – it means your business is growing!
However, raising your prices is nerve-wracking. It is a sensitive topic, and it can be uncomfortable bringing this up to your customers, especially those who invested in you early on. While it is almost inevitable to lose customers while raising your prices, here are a few tips on how to tell your customers about your price increase to help make it easier.
BE UPFRONT AND HONEST
When it comes to increasing prices, do not beat around the bush when telling your clients. The last thing you want to do is surprise them! Most consumers will be willing to pay more if they like your work and find the cost is worth it.
Your reasons for increasing your price may vary – you have more work, your skills are evolving, or maybe your expenses are increasing. By adding context to your price increase, it will help build trust with your customers. Keep in mind not to over-explain your reasons. Too much information can confuse your clients and is unnecessary.
You are the boss – so take control of the situation. Let your customers know ahead of time about the price increase. This way you are proactive and allow them the time to prepare. You’re also showing good faith and showing appreciation for their business.
By doing this, you can also set yourself up for a conversation to help build their business and provide more services in the interim. For example, you can allow them to buy into services before the price increases or provide services at an added value.
ROLL OUT COSTS SLOWLY
Increasing prices and the potential loss of customers can cause a lot of anxiety. Another way to increase your prices is to ease your customers into it. Beta test your new products and services on a set of clients to see their responses. The beta test will provide insights on the opportunity and the investment increase.
PRICING PACKAGES & TIERS
Consider having tiered price options for your products and services. For example, you could put together a package at a higher price while still offering more basic options.
INCLUDE ADD-ONS & ADDED VALUE
Consider add-ons or value-added products. If you include add-ons that appeal to your customers, it will be easier to discuss a price increase. Sometimes raising your prices without adding value won’t work for your customers. Creating additional value and altering your current service will make your customers feel like the new value is worth the increased price.
Raising your prices can be scary, but there are ways to make it as painless as possible for you and your customers!