After you have been in business for a while, you may want to think about raising your prices. This can be tricky, because there is a certain price point that may be “competitive” or “industry standard.” Many business owners believe if one of their competitors offers the same or similar service for a lower price, then this is where their customers will go.
This might be true, depending on the industry, however, for most business owners, it’s a dangerous thinking trap that can trap you and keep you from growing your business.
Take cars for instance, does BMW or Mercedes Benz worry about competing with Ford and Chevrolet?
Does Mac or Laura Mercier worry about competing with Loreal or Maybelline?
And does the Ritz Carlton worry about charging more than the Marriott or the Westin?
Of course not, because all of these luxury brands have branded themselves as high end companies, and they back up with their pricing with quality, reputation, and service. Every business has the opportunity to do the same.
Ideally, you have already created enough customer loyalty to support a price increase, but it’s not easy for many business owners to do so without some level of fear, doubt or worry.
Here are some ways that you can raise your prices while keeping your current clients and attract new ones as well!
- Specialize: When you have a specialty product or service, you are in, obviously, a better position to raise prices. Be very clear about the results you deliver, and intend to deliver. This increases your credibility, and, if you have already been consistently providing these services, you are in a much better position to raise prices. You should already be established as an expert before you try to raise prices, and already have a long list of satisfied clients or customers.
- Sales Skills: When you go about the process of raising your prices, you need to be confident about the value that you can offer. You have to be confident about your customer service, too. When you can convince prospective clients to see the value in your product, you are going to be better off when you raise your prices. People are often willing to pay for quality—this is what you need to be offering and proving.
- Testimonials: The best salespeople are your satisfied customers. Third party endorsements go a long, long way toward helping new clients pull the trigger and do business with you. Don’t be shy about asking satisfied clients for testimonials. Consider written forms, video forms, before and after photos, case studies and any other social proof that you can to prove that your products and services are valuable and worth the investment of the potential client.
- Content: It is the quality of the content you have that establishes your credibility, helps show your value and build relationships with your clients, customers, contacts and followers. It is important that every article and post that you create, every video you share, every social media post, status update or tweet reflects the quality that you want to represent your brand. It’s easy to either come across as an expert, but it is also easy to butcher your own brand, inadvertently!
As you consider when it might be time to raise your prices, make sure that each of these issues has been clearly and successfully addressed, so that your products and services reflect quality and value, and people will be willing to pay your prices!
If you’d like to take your business to the next level by attracting more clients and increasing your clients, apply for a Business Audit Session with me by applying here: