We have already talked about four ways to increase prices for your business. In that post, I’ve described four different techniques to raise your prices based on different situations as a reason for that step.
But, the real problem when we talk about raising the prices is the customer’s perception. I don’t know entrepreneurs who didn’t ask themselves the following questions: What will my customers’ reaction be when I increase my prices?
Will the customers continue to buy with the same quantity as before raising the prices?
Let’s talk about the possibilities that you as an entrepreneur can use to amortize the impact of raising the prices on your current customers.
#1 You can add additional value to the offer.
One of the first things you can do when you try to raise your prices is adding value to the offer. You can add new features, new benefits, additional service components, bonuses, guarantees, shipping, handling, etc.
The logic behind this is that if you add additional value to your basic offer for which you want to raise your prices, it can be seen as fair compensation for the higher price rate that you will ask for your products and services. Your customers will appreciate you in such a way because they will receive more values that will save them more money.
Whenever you want to raise your prices, you always need to add additional value to your offer.
#2 Improve your offer when you raise your prices.
The second thing that you can use in lowering the impact of raising your prices on your customers is to improve your offer, for which you will ask more money.
One part is to improve the content of your offer, your products and services, and everything else build around your products and services. This is something that you make when you add additional value to your offer.
The second part is to improve your offer make them really irresistible for your customers. The irresistible offer didn’t ask questions about the price from the customer’s perspective. It is simply irresistible. You can read more in the 26 ways to make your offer irresistible.
When you think about the improvement of your offer, think about improvements in benefits. Think about improvements of the problems that your business solves and the way how you present them and communicate them. Also, think about the real desires of your customers. Think about how you can activate emotional triggers in your offer. Think about improvements of your call to action and social proof as a part of your overall offer.
Those are the elements that have a huge potential to amortize the impact of your current increase in price in the eye of the customers.
#3 Be honest.
The last thing when you raise your prices is, to be honest with your customers. This means honestly explaining why you are forced to increase your price rates.
Remember that honesty is one important element that can increase your credibility, reputation, and trustworthiness. That’s a large part of your business’s potential energy as an entrepreneur.
If your customers can understand your intentions, they will understand why you need to raise your price rates. If they are satisfied with your business until today, they will continue to buy from you.