As a business owner, you will likely need to increase your prices from time to time. But while this is something that’s usually just part of life, when it happens to your customers or clients, they may not respond well to this. Luckily, there are things that you can do to help you smooth things over with your customers or clients while still raising your prices to what seems fair to your business.
To help you see how this can be done, here are three things to consider before raising prices on your customers or clients.
Do Lots Of Research First
Before you decide to raise the prices on your customers or clients, you’re first going to want to do a lot of research about this. This research should include finding out the valuation of your business and if you can justify charging more money for your products or services as well as how much more money you might be spending in order to fulfill the products or services that you’re providing.
Just because you’re having to spend more money on your business doesn’t necessarily mean that you should automatically be charging more to your clients. But if you see in your research that the market is rising with you and all of your competitors have recently had to raise their prices as well, it makes more sense to your customers or clients why you’d have to as well.
Beware Of Big Price Jumps
If you know that you need or want to raise your prices, it could be wise to raise them gradually rather than trying to do just one big price raise.
When you choose to just raise the prices a small amount now with plans to raise them again in a certain period of time, you can help your customers or clients not to feel so shocked by the price increase that they automatically seek to find a new company to work with. But by doing this process slowly, you can help them be more used to the prices as they slowly increase.
Be Transparent About Why
When your business knows that it needs to increase the prices on your customers or clients, you might be nervous about making this change, so much so that you may want to hide the change in the hopes that people don’t notice. However, they definitely will notice this.
Knowing this, it’s best to just be transparent about what you’re doing and way. Explain that your own expenses have increased and that you need to raise your prices in order to meet them. You can also share that, by raising your prices, you’ll be able to continue to provide the quality of products or services that your customers and clients are used to.
If you’re planning to raise the prices on your products or services, consider using the tips mentioned above to help you make it through this transition.
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