The basics of raising prices in the retail business are simple indeed you take off the old price markers and replace them with new ones! In other businesses however, how you go about phasing in those higher prices can be and is a very serious issue. How to raise prices without losing customers is a most vital consideration, Let’s take a look at some ways that you can adapt to make the transition smoothly and seamlessly.
Raise prices in conjunction with added services.
When and if prices are raised, customers will of course be focusing solely on that matter. If however, you also have new products or services to introduce at the same time accompanying the increase, the impact of the price increases will be lessened, and the focus will not be solely directed at it.
Create different volume points
Prices do not always have to be raised so that you may increase margins. Your profit margin can and will be increased by maintaining the same price but lowering volume. For instance, very often a restaurant can keep the same price while gradually decreasing portions a bit health, beauty, food and other various commodity providers can employ the same tactics. (For example, introduce that brand new and attractive shampoo bottle which holds 10 instead of 12 ounces and margins quietly increase!).
Another great idea is the introduction of a lower volume point in conjunction with a higher per-unit price. As an example, if you are currently selling a package of widgets at a price of 120, you can add on a package holding 20 widgets and put a price tag of 50 on it. Customers are alert to getting discounts on higher volume, and paying out on lower volume a higher per unit cost.
Create bundles of services or products.
The public tends to feel they are getting a better deal whenever services or products are bundled, even when the cost of individual items cannot really be determined. Put together a package of similar services or products along with a complementary service of some sort, and you will be able to increase prices on some individual items all the while masking the increases within the total package.
Check us out next week for some more great strategies on ways to raise prices without losing customers!
Do you agree or disagree with these strategies? Have you tried them before? Tell us in the comments below!