How To Comfortably & Confidently Increase Your Prices
The subject of increasing prices tends to make people feel uncomfortable, but if you’re running a business, there will inevitably come a time when you need to raise your rates to better reflect the value of your services. Having a plan in place will help you to feel more confident when communicating the increase in price to your clients, and ultimately keep them on as customers.
Here’s how to comfortably & confidently increase your prices.
GIVE YOUR CLIENTS PLENTY OF WARNING
No one likes surprises when it comes to business! So it’s best to give your clients plenty of warning before you raise your prices. This will help your clients feel valued and give them time to make any necessary changes on their end before the price increase comes into place.
Choose a date for your price rise and be sure to let your clients know that they can continue buying at the old price until then. You may also consider following up with a reminder closer to the effective date.
COMMUNICATE YOUR VALUE
When communicating a price increase to your clients, be sure to clearly outline the value that they will receive.
Your message should include answers to any or all of the below questions:
What has changed about your services that provide additional value?
Have you done extra training, developed new skill sets or hired specialists?
Have you expanded your service offering?
Are there benefits that you now offer that weren’t listed in your original quoting?
Remember, if your clients feel like they’re getting great value, they’ll be more likely to have a positive reaction to the price increase.
DON’T APOLOGISE
Price increases are a standard part of business, so don’t feel the need to apologise! Doing so can take away from the key message you are trying to communicate to your clients and may make them feel like you aren’t confident in the increased value you’re providing.
BE CLEAR ABOUT THE DETAILS
When communicating the price increase, make sure you’re very clear about the details so as to best avoid confusion and doubt. Your messaging should include:
The exact price increase
When the price increase will come into place
What will happen until that date (e.g. old price will be charged until X date)
What happens for clients that are currently on a promotion/being offered a special price
Presenting specific details from the beginning will show your clients that the price increase has been very well thought out and make them feel more comfortable with the decision.
BE CONFIDENT
Know your worth, and charge it! Have confidence that the services you provide to your clients are valuable, and make sure your pricing reflects that.
When communicating your price increase to your clients, consider telling them in person or over the phone. Be yourself and use your normal tone and language; there’s no need to revert to a formal explanation in corporate speak if that’s not how you normally communicate with them. This will help you seem approachable to your customers should they have any questions.
Need further assistance approaching the conversation of a price increase with your clients? Reach out to us at support@ironadvisory.com.au or book a FREE consultation with us.