Why you shouldn’t be Afraid to raise your Prices

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If you’re worried that you’ll lose customers as a result of raising your prices, keep reading for some insight and tips.

Have you ever wanted to raise your prices but hesitated because you feared some of your customers would stop booking with you? If you want to grow your business, raising your prices is a must. Perhaps you’re not ready to raise your prices right away, but keep in mind that eventually, you will need to adjust your prices in order to grow.

While you might feel weary when it’s time to inform your customers of price changes, if you are booked 85% of the time or more, this might be a sign that it’s time to reassess the true value of your services.

WHEN SHOULD YOU RAISE PRICES?

  • Prematurely raising your prices can be harmful, especially if you don’t have enough clients to fill your schedule
  • Consider making price adjustments when you are at least 85% booked or if you are booked 3-4 weeks out
  • If your demand is higher than your supply, this might also be a great indication that it’s time to raise prices
  • Be mindful of price increases, as you shouldn’t raise prices simply because you feel like it – this can be detrimental to your business and cause your current clientele to leave

PROVIDE ENOUGH NOTICE:

  • Be courteous, and provide at least one month’s notice – this is common practice and allows your clients to adjust to your new price points
  • Create an email marketing campaign which includes the exact date of your updated prices along with an updated service menu
  • Keep your campaign positive and be prepared to answer questions

SUGGESTIONS:

  • Show your loyal customers that you value them by offering a special limited-time offer – a 5% price increase for loyal customers and a 15% price increase for all new clients
  • This shows that you value and appreciate your loyal customers and that you are committed to providing an excellent experience

DO:

  • Be polite and understanding
  • Remind customers how price changes will benefit them – try not to take concerns personally
  • Talk about how your new prices will allow you to hire more staff, offer more services and enable you to extend your hours, if applicable
  • During your first week of price changes, offer your clients add-on services at a discounted rate – this shows your appreciation for their business
  • Although you might not believe it, most of your clients expect your prices to increase at some point, and even though they might seem upset at first, they will most likely be understanding over time

DON’T:

  • Don’t talk about your increased bills or an increase in the cost of living – your customers are not likely to empathize
  • Don’t take complaints to heart – listen, but don’t take them personally
  • Complaints from frustrated customers are bound to happen – don’t overreact to complaints, as this might determine whether or not a client sticks around
  • Accept the fact that once you raise your prices, you will lose about 10% of your customers

Don’t worry, this is a good thing – focus on attracting your ideal clients, those who place a high value on your services

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