9 Ways To Raise Prices And Not Lose The Customers
Sooner or later, any company is faced with the need to raise prices. No one will sell a product or service at the cost of ten years ago if they want to keep their business. Inflation, rising prices for fuel, raw materials, and rent increases occur regularly and are outside our zone of influence. Correspondingly, entrepreneurs’ expenses for the purchase, transportation, and maintenance of goods are also growing.
The rise in value confuses many businessmen: how to raise prices and not lose customers? This fear is entirely justified. But if customers abandoned the product immediately after the price increase, not a single product would remain on the shelves. Prices go up all the time, but there are several rules to follow to make it painless.
How To Retain A Customer If You Raise The Price
1- Don’t Shock The Customer – Raise Prices Gradually
If the increase is a few percent, your customers may not notice. In the worst case, they will be indignant but hardly go to competitors. For example, if you raise essay help UK prices 20% at once, customers will be annoyed
There is a great risk that they will stop using your services. How to raise the price of a product in the most imperceptible way for the client? You can make paid extra services that were free before. People who did not use them will not pay attention to the promotion, and those for whom this service was fundamental will be upset but will pay.
2- Conduct An Experiment
Raise the price by one product category first. See how the client reacts to this decision and assess the possibility of further growth. You can also differentiate price increases by customer category: raise the cost first for those who are less important to the company, and track the reaction.
3- Think Over Your Strategy In Advance
Develop a plan to raise the customer’s price in the event of an increase in material or shipping costs. At the start of a business, assess the opportunities, and list options for the future. Then raising prices will not be a problem for you, but only part of the strategy.
4- Enter The “Service Package” Into The Assortment
This offer always includes several obligatory services, even if the client needs one of them. The consumer will “bite” if the product he needs is more expensive outside this complex.
An illustrative example is Internet connection companies when they offer you free digital television or a separate tariff for mobile communications.
5- Increase Prices For Exclusives
Divide your product into categories: from the most prestigious and expensive (including production and purchase) to the most ordinary and cheapest. Consumers of elite and exclusive products will continue to use them even after the price increases. Some clients, by the way, may join you after the price increase, following the rule “expensive is precious.”
For example, if you are providing an assignment writing service then create two different packages for different customers.
6- Inform About Price Increase In Advance
Treat the buyer with respect – warn about price increases in advance (preferably no later than a month). If your relationship with the consumer is close, and you communicate with them, then the price increase without warning can be perceived very negatively. Also, you can offer regular customers to place an order at the same price before the increase. This way you will not only not lose people’s affection, but also provoke additional sales.
7- Make Your Product Even More Valuable
Consider a promotion that talk about improving your product or service. In this case, the price increase will be logical and will not cause any complaints, because you are working on development.
For example, you can take any skincare product that becomes “perfect” from year to year and makes your face look better.
8- Use The Seasonality Factor
Fur coats are more expensive in winter, and swimwear in summer, and this does not surprise anyone. If your service can be attributed to the season events then the client will use it anyway.
9- Stand out
Your competitive advantage can be the main argument for raising prices. If your product is unique and in demand, if it is a bright “leader”, then the question is “Should we raise prices?” not relevant. You can safely do this without fear of losing customers. Just remember Apple, whose technology becomes more expensive every year and does not lose its popularity.
We are hopeful that these tips will help your business to increase prices effectively without losing customers.