Tweet

Raising Your Prices Without Losing Clients

Written by: Chris Simpson

Article Overview: Some home based business owners operating online are afraid of raising their prices because they will, they think, lose a lot of their clients. But if you feel the need to up your prices to cover your time and expenses, there are ways of raising your prices without losing clients.

Raising Your Prices Without Losing Clients

Some home based business owners operating online are afraid of raising their prices because they will, they think, lose a lot of their clients. But if you feel the need to up your prices to cover your time and expenses, there are ways of raising your prices without losing clients.

One way of raising your prices without losing clients starts long before the actual time comes for raising prices. You see, if you have planned your Internet business right, and you are selling to niche markets, you shouldn't really be competing one price to begin with. It's a myth that people are more sold on pricing than they are on anything else.

Sure, there are people who care foremost about price but the typical person, while they certainly do want to pay the lowest price for something that they can, is looking for more than price. The average person wants quality, and as long as the quality is there they are willing to pay for it.

So, in order to be able to raise your prices without losing your clients, right from the start make sure of a couple of things. For one thing, are you selling the highest quality product within your niche?

If you have a reputation for quality, and you are narrowly focused on meeting the needs and desires of people who buy within your niche, when the time comes for your prices to go up your clients will remain with you because of what you provide to them. They will even feel like they were getting a bargain before!

Another thing about product choice: if you are offering something that doesn't rely on trends and fads, but is something that people within a niche are always wanting or needing, most of them are going to continue buying it even when there's a price hike.

Inflation has not stopped people from drinking Coke or buying bread. A wild oil market has not stopped most people from driving their cars, even if some of them do drive a little less now. So, if you have already established a good relationship with your clientele, they will continue buying from you even after your prices go up because they know you, trust you, and you have something they want or need.

And how do you establish that good reputation? By always providing highly responsive top-notched customer service. Get back to client communications as quickly as you can. Always do what you said you would do. Deliver their products or services promptly and always thank them for buying from you even if it's their 100th purchase from you.

Resolve any issues they have as quickly and thoroughly as you can. Do all of these things and you will rarely have to compete on price. But if and when the time comes when you feel you have to raise your prices, there are a few things you can do to soften the blow.

First, give as much advanced notice as you can that your prices are going to go up, and by how much. Also, give your clients the reasons why you're raising prices. Is it inflation? Have your advertising costs gone up? Do you want to expand your service capabilities?

Clear, honest communication goes a very, very long way, and most of your clients are going to be quite understanding of your need to raise your prices as long as they get that clear, honest communication from you.

Related Articles
  Raising Service Prices in a Recession
  Unscrupulous Competitors
  How to raise your prices due to the increased cost of gas
  Discounting Prices: How Low is Too Low?
  Your Service Pricing: Get Ready For the Recovery

Article Tags: actual time, average person, based business owners, business right, clientele, coke, desires, fads, good relationship, highest quality, home based business, inflation, internet business, myth, niche markets, oil market, price hike, product choice, quality product, typical person



Related Forum Posts
Re: Who Did You Learn Most From and Why? - Hi Martin, You missed out on the most essential community that helps you grow - Your Clients. Well, I believe that my Initial Clients have been the ones who have given me the moments of 'aha' in my business. They have stood by me even when I was a starter and that has helped me shape and build my stand. They have helped me grow as an entrepreneur, learn to have loads of patience and make the most of what comes across. They have also helped me to strengthen me as a person. btw, personally speaking, my Grandfather always kept me on track and lent me emotional support when I was down in any matter - be it business or otherwise.
Coaching Women vs. Males - Tami, Do you have any clients from Eastern Canada? I was wondering if Coaching Clients from either Coast was any different. Also is it different coaching women entrepreneurs vs. males?
Internet Marketing is the best business in the world - I have 7 reasons for saying this 1. You develop it once an sell it many times 2. You have no inventory. 3. Clients pay you before they download your product 4. You earn money 24/7 5. No face to face selling 6. You can outsource the production 7. You can do it in your room
Richard Branson's Book - Richard Branson's Book "Losing My Virginity" is a must read for people starting their own business.
Re: Email Etiquette - [quote="jvprosperity":24jznj58] The P.S. suggestion is good but it depends on the type of communication (e.g. Autoresponder series verses one off emails to Clients or Prospects)[/quote:24jznj58] Andy, You are right. I was mainly referring to Auto Responder emails. To end a normal email, I attach signatures. Takuya


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

An Intelligent Contact Sheet

Working Across Borders

How to Write Your Articles for Better SEO

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.