How To Increase Your Prices While Not Losing Your Customers
If you wish to grow your business, then you need to raise your prices too. But this may not be liked by your customers. Hence you need to be careful here so that you do not lose your hard-earned customers while still raising the prices!
Do not try to hide anything here. In case you hide, your customers will lose trust in you. Tell them upfront that you are raising prices as you are moving with the market, or that the prices of raw material has increased or your level of expertise demands higher pricing. Be honest here. People love it. You may still try to offer some kind of bulk discount in case you wish to break the news gently to them.
Once you increase prices, you need to thank your customers. You need to express your appreciation for the risk they have taken on you, and the support shown for you. Make them understand why you are asking for more money. Tell them why your product or service is worth much more now than when you had started. This always works as most customers tend to be understanding and supportive of honesty.
Once you are able to explain to your customers why you are raising your prices, you also need to tell them how you would be using the additional funds that you will be receiving now. It can be that your own expenses have gone up or the prices of raw material have gone up. You may be spending more money on your product as you have added in more features. Now explain to your customers how all these additional features will be benefitting them.
Once you have added a value feature to your product or service, you have a reason to review this revised pricing with your clients. Customers need to understand that earlier you were at the beginning stage of your product and now with this kind of improvement and new features; the pricing is bound to change.
In case your customers are not happy with this increase in prices, give them a second option that is lesser-priced. This way customer can make a decision. They can decide if they wish to go for the new, feature rich product or settle for its lower counterpart. This way you do not lose any customers too.