If you’re a new business, chances are, at some point, you’re going to raise your prices. If it doesn’t happen now, it will happen sometime soon. But many sellers are hesitant to raise prices because they’re afraid they will lose their customers in the process. But if you’re careful and you do it right, there is a way to have your cake and eat it too. In fact, there are many. Let us look at some of them.
The Perfect Window of Opportunity
There is always a right time for you to do certain things–you have to wait for it, and then, pounce. In a case like this, you need to wait for when you have successfully hooked your customers. When they are satisfied with your product and willing to come after you for more, that is when you increase your prices.
It is basic logic—if you offer more, they will offer more, as well. When you want to increase your prices, consider throwing some extra benefit or service along with your product that costs you less than nothing. Remember—you only have to increase the perceived value of your product. If you achieve that, your customers will remain with you, no matter what.
Why do you have to increase your prices at all? One sure way to keep your customers from scampering to your competitors is to keep your costs the same but reduce your portions instead. It is one way to keep your business going without draining your funds.
Increase Prices Gradually
One of the most reliable methods to raise prices without angering or alienating your customers is to increase it gradually. By doing this in increments, you can ensure that in the long-term everyone pays the higher price. However, there is always the possibility that new customers might found out about the price differential and refuse to pay. If this is the strategy you want to employ, you should prepare for his possibility.
Vary Your Price Options
One way to increase prices is to charge different prices for the variations in products. For instance, if you sell products in different sizes, colours, or added features, you can charge different prices for those products. In this way, you can cater to various kinds of people and their corresponding budgets. It is also a secure way to earn more profit out of the product.
If your product is outstanding and your prices are fair, most customers are willing to pay the extra few bucks. You can be honest and trust that they will follow your lead. As the famous saying goes, honesty is the best policy.
When the time comes, you might want to some of these methods, or none of them. Whatever you end up doing, you might probably lose a few customers along the way, but that’s inevitable. You should do what is best for your business, and customers will do what is right for them.