Does just the thought of talking about raising your price give you the shakes? I totally understand. There’s a lot at stake when you decide, or circumstances require, that you do a price increase.
No doubt you’re gonna feel afraid about your clients reaction. After all, you don’t like to hear about increases, either. And, worried that clients will bolt for the door, leaving you with even less income. This is the stuff that leads to insomnia!
Good news is that you can share your news in a natural way that makes it easier for you to say and easier for your clients to accept. If I were a small business owner who wanted to raise her prices, I’d consider these approaches to having a productive conversation:
How to Tell Customers About Your Price Raise
- Be Transparent about your intentions and feelings. Share why you need the raise and how do you feel about it.
- Bridge your Common Interests. You both want to work together at a fair price.
- Reference an Authority Rule/Figure. Cite a universally accepted reason for the increase, i.e. cost of materials or being ‘in demand’ People still buy orange juice even after the price goes up due to weather.
- Offer options to soften the blow. Buy more now or commit to a longer contract at the current rate. It’s a way to soften the transition.
- Emphasize New Benefits. Everyone loves new stuff and realize it costs a little more. Just like L’oreal, you cost more, but you’re worth it!
- Throw in a small incentive. Something as small as a coffee gift card can be persuasive. A spoonful of sugar helps the medicine go down!
- Stand Firm. Remember why you need the increase and what that money will let you do in your business (or life!)
Consumer realize that your prices have to go up if you want to stay in business, most anyway. However, we all resist change, so make it easy for them. Brain science suggests that we tend to be more agreeable when there’s a reason for change. Have a reason and share it. Feel badly about raising your price? Share that too. Clients can relate (and maybe empathize!). And, definitely be yourself- that’s who your clients know like and trust!
Do you find it tough to have this conversation? No worries. I’m talking more about how-tos at my web event, Say Your Price Powerfully! Stop by.