A price increase, no matter how drastic, can be a daunting task. Particularly if you are a new business or just starting to break ground in your industry. The last thing any entrepreneur or business owner wants is to upset or drive away a customer. However, to increase your profits, offer a better product, or grow, a price increase is inevitable at some point. By creating a strategy and plan, whether it’s through your advertising or sales, it’s possible to execute a price increase and notify your customers without leaving them fuming for an alternative.
One tactic to raise your prices responsibly includes increasing in intervals over a gradual period of time. An example of this is Starbucks who raised its coffee prices 3 times in 3 years. Or, try charging only new clients to start. You can give a notice to your loyal customers of when a price increase will take place so they have an opportunity to consider, give feedback, or work the new price into their budget.
For a full breakdown of tips, check out the infographic below on 12 ways to raise your prices. With these specific tactics and tips on how to deal with an angry customer, you’ll be prepared to raise your rates in a strategic and responsible way.