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How to raise your prices without losing business

By Edited Sep 2, 2016 0 0

How can you raise the prices of your product or service without losing business? Anybody can increase their prices. The big question is: Will you be able to keep or increase your business once you raise prices?

There are three important steps to
achieving this

1) Know your market

The first step to achieving higher prices is to know your market.
Contact your competitors and obtain quotes. Ask your clients what they are paying for products or services like yours. Learn your market and make an IMMEDIATE adjustment when you
spot an opportunity.

I recently called our competitors
to uncover what they were charging for their products. Even though pricing of our products was similar, I noticed that they were charging a great deal more for transporting their products than us. Transportation is the second largest revenue stream at my company and this was big chance for

I immediately increased our transportation fees by 50% and
you know what? Our customers didn’t flinch. They kept ordering! In a month I added roughly 3% to the bottom line without doing anything different except quoting higher prices. Talk about return on investment! But first I had to get a greater familiarity with
the market.

Improve your
level of service

The next step to increasing your prices is to offer more and better SERVICE. When you can find ways to raise your service offering, your customers are going to pay
you more.

People will pay you
depending on how valuable you are to them. Price and value are two very different
things. Price is what you set, value is what the customer gets.

The good news is that you can influence your value.
You do have a say in this! All you need to do is offer more and better service. If you're able to
influence value, then you can influence price as price follows value.

Ask for
higher prices

The last step to achieving higher prices is to ASK for them. After you gain a better knowledge of your market and increase your service offering, you are
fully equipped to raise prices.

Have confidence when you
request your higher prices. If you think you're worth it, so will your customers
. Never sell yourself short.


There are small things that you can do
TODAY to increase your service offering. For example, I am sure you spend plenty of time working to get new clients
, but how much time do you spend following up and thanking them for their business?

Following up and thanking a customer
is something you can do now to enhance your level of service and lead you down the road to increased prices (and commissions, bonuses and profitability!).


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