There are many reasons why a business might raise their prices. You may have a sudden increase to your expenses that you need to cover. Maybe you’re trying to expand and need to generate extra capital to cover some of those costs. Those aren’t the reasons you want to be giving your customers though. If you want to be able to raise your prices without ruffling too many feathers and risk losing your customers, you need to be able to justify the price hike in a way that benefits them.
Introduce Tiered Products
Expanding your product line offers you a way to naturally boost some of your prices without gauging your customers. Try designing tiered products and services. Three tier pricing offers you a chance to appeal to a larger section of the market by catering to the different pricing needs of more customers. You can offer customers a basic product for a lower price, while offering a more deluxe package with a higher price. Make sure there is good synergy between your products that you bundle together. They should work together to produce a better result than your customers would get if they only purchased the basic product. Market tiered products by focusing on the benefits each tier offers your customers, showing improvement with higher tiers.
Provide Better Service
Consumers tend to place a high value on the quality of the customer service they receive. The better the service, the more they are likely to be willing to pay. Since the pandemic, 28% of customers say price is less important than the service they get. This means that providing better service may be one of the best ways to justify raising your prices. Make sure you train your employees well so they can provide the superior service you are expecting from them.
Providing Better Quality
Improving the quality of your products is another way to justify a price increase. If you’re going to use that as your justification, make sure your customers will be able to notice the difference in what they’re getting. Highlight the improvements you’re making in your marketing. Tell customers how those improvements will fulfill their needs better. This will help customers know what to look for and make it easier for them to tell the difference between what they were getting before and what they’re getting now.
Raising prices is bound to upset some of your customers, but it is possible to mollify them if you can justify doing so. Introducing tiered products and providing better service and product quality are just some of the ways you can justify raising your prices. Make sure that as you increase your prices you also provide your customers with greater benefits of some sort. People may not always mind paying more, but they do want to get their money’s worth.
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