The cost of running a business increases each year, so it doesn’t make sense to keep prices the same. Yet, many businesses don’t increase the price of their goods and services because they think they’ll lose customers. Here are 3 ways you can increase prices and keep customers.
Start small, and time it right.
Prices increases shouldn’t be huge. Increase costs by 3-5%, chances are your customers won’t mind too much and will continue buying from you.
Be sure to increase prices when customers are satisfied with your product or service. If they’re unhappy and you increase prices, they’re more likely to go elsewhere
Increase the perceived value of your goods or services. You can do this by including a ‘free gift’. If you are a services firm offer a free 30 minute consultation.
Emphasise all the benefits of your product or service. Tell your customers why they should buy from you rather than your competitor.
Reduce the pain of a price increase by offering complementary products or services together as part of a bundle. Customers will feel like they are getting a better deal as the cost of the bundle will be at a discounted rate compared to individual prices.
A good example of bundle offers are ‘Meal Deals’, the cost of the sandwich snack and drink would be considerably higher if bought individually.
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