Who isn’t on the lookout for ways to make more money in their business? When you first start a corporation, you’re just happy to get customers at any price. But as you grow your business, you want to increase what you charge…without angering existing customers.
These tactics will help you bridge the gap between making more money and keeping the customers you have.
Tip 1: Only Raise Prices for New Customers
The best way to not upset existing customers is to not increase rates for them! Consider past and ongoing customers grandfathered in to previous rates, and only increase prices for new business.
Tip 2: Set a Timeframe for Price Increases
If you’re forced to raise prices across the board to maintain your profit margin, give your existing customers plenty of warning. Let them know that, as an example, you will increase prices in three months. This gives them time to work through that fact and budget accordingly.
Tip 3: Raise Prices, but Offer Discounts
If you sell items both a la carte and as part of a package, you can increase pricing for the a la carte items (an example: if you are a writer, a single blog post as opposed to a package of 12), but offer a discount when clients purchase multiple products or services at once.
Not only are they more vested in a long-term relationship if they buy multiples, but you really don’t lose any money by “discounting” a bigger package. Money in hand beats having to sell more a la carte items at a higher price.
Tip 4: Offer More Value at a Higher Price
Just because you raise prices doesn’t mean you can’t offer more. See what your competitors are offering, and then match their price (or even surpass it) but offer even more value. Here’s an example: if you sell business consulting services, you could boost your hourly rate, but offer a free business guide or ticket to a conference as an add-on.
Tip 5: Offer Tiered Pricing
Every potential customer you meet will have a budget in mind, and your ideal offering might not fit it. Rather than lose the customer, create three tiers with different offerings and price points. That way, there’s something for everyone.
Whether you run an ecommerce business, a B2B company, or a brick-and-mortar store or restaurant, there’s always a right way to raise prices.
Not ready to raise prices because you’re just now starting a business? Let CorpNet help you start a corporation the right way.