So you’ve done the math, you have considered your perceived value and you have decided it’s time to “Up those prices”. Now you want to know how to go about doing that without losing sales or upsetting clients.
The truth is there is no way to guarantee you won’t upset some of your customers, but if you are confident in your prices then maybe you need to be looking for different clients.
Taking the plunge
There are two basic ways to raise your prices;
- Just do it!
- Let people know that you are about to do it.
It really is that simple, but let me know talk you through of each option.
Just Raise Them
To be honest with you, no one is paying as close attention to your business and your prices as you probably feel they are. You are likely expecting a tirade of emails and comments on your price increases from disgruntled customers, in reality that is very unlikely to happen.
If you are raising your prices by a a small amount most people won’t even notice you have done it. And a simple way to test this is to simply add $1 to each of your current prices.
Think about that for a moment, as a consumer $1 is unlikely to change your buying behaviour. But as a business owner consider the number of sales you made last month, was it 10 pieces or 100 pieces. What would it mean to your business to make an extra $10 a month, or $100! Even at the low end that sounds kind of exciting right.
So go over your sales pages and your etsy shop and put everything up!
See if anyone even notices.
If you are met with resistance from existing clients have a simple statement ready which explains the price rise was necessary because you are taking your business seriously and you are excited to build a sustainable project so you can keep on creating.
Make sure you don’t get defensive or apologetic and try not to be insulted by people’s comments, it might be that they are not your ideal customer.
Inform people before you raise them
This can be a great way to explain your new pricing and make some immediate cash flow all at once.
Use your databases (Facebook followers, email subscribers etc) to let people know that you will be putting up your prices on a certain date in the future. I wouldn’t leave it any more than 3 weeks.
Warning people that the prices are going up SOON allows them to buy stock they have had their eye on at the current prices and might give you a quick injection of cash.
Make an exciting event out of it, invite people to be excited for you. Your business is growing up and your prices need to reflect that.
What about the naysayers?
Are you are sitting there thinking; “Well, that all sounds good, but people already complain about my prices so I can’t possibly put them up!”
Let me tell you a secret. If you double your prices, there will be people tell you it is too expensive. The thing is, if you halve your prices, there will STILL be those people who tell you it is too expensive.
You need to remember there are much better ways to differentiate your business in the marketplace than competing for the lowest price and you deserve to get paid for your work!
Are you ready to up your prices? By how much?
How will you go about it?