4 Tips to Raise Prices Without Losing Business

Your time and resource are limited, and you cannot or do not want to proceed as before. The time has come to increase your prices.

Whether you are a yoga teacher, plumber or general contractor, no one likes to tell customers that their rates are going up. Here are our main tips for raising prices without losing business successfully:

1. Give Notice in Advance

Some of your customers may not be able to pay for your price increases. That makes sense; everyone has a budget. If you can tell them that you will increase prices in a few months, you give them time to find a new grantor, adjust their budget, or prepare to pay more. Everyone prefers to hear about changes before they happen, rather than having to adjust at the last minute. If your client is loyal to you, giving notice of price changes will be seen as one of the ways you can show them how much you value your business.

2. Gradually Raise Prices

Unless you have experienced a dramatic decline, you should try not to increase prices dramatically. Doubling or triple your price tends to frustrate clients who often use your service, and that can change your target market. It's okay if you are a wedding photographer who doesn't expect a lot of repeat business, but if you are a handyman who regularly works with apartment complexes, you don't want to give your self-esteem from work. Something like a 10% or 20% price increase is likely to be easier to swallow for the people and companies that you work with - even though the number will vary, industry to industry. Raising prices without losing business usually means raising cost slower than you want.

3. Show Your importance

You always require to prove your value to keep customers, but that is especially true when you increase prices. Think carefully about what you have to offer: are you a craftsman who only works with high-quality materials for a decade? Are you a yoga teacher who buys a new mat or takes advanced courses to give your students a better experience? Maybe you are a house cleaner, and you realize that you work faster than your competition, so you accomplish more in less time. Whatever your profit, raising prices is a good opportunity to help your customers remember why they are hiring you.

4. Say "Thank You"

Your business will not exist without your customers. Raising your prices is a good chance to remind them that when you deal with them in your professional capacity, you also value them individually. Your clients pay you, help you be aware of your dreams, help you grow and build the kind of life you imagined when you first opened your business. Even though it might be difficult for them to hear that your service will be more expensive, if they know they are valued and not taken for granted, they are more likely to stay with you. That's even proven - "thank you" is very strong.