This is probably one of the toughest questions a business owner thinks about! At some point, you may have to raise prices due to rising product, office supply, and payroll costs. Sometimes loyal customers have some pretty strong feelings about it—so how do you raise your prices without alienating your customers?

Pricing touches three sensitive areas for most business professionals:

• Your confidence: Am I (or is my product) actually worth this?
• Your customers: Will they get mad and leave?
• Your Market: What if competitors are cheaper?

Price increases can feel like betrayal when they are sudden or unexplained. No one wants a price increase, but when they see the value of what you are providing and they understand the reason for the increase, you are likely to keep them as a customer.

You have options—you can reshape how people buy from you. Try repackaging: Instead of $125 per visit, create a lower standard price and a priority visit tier; instead of a single offering, offer a membership that has some benefits; instead of hourly rates, offer a flat-rate option for common work.

Increase your minimums: project size, order quantity, monthly retainer, delivery fee, etc. Adjust for urgency and complexity—not all work is equal, nor are all customers, and pricing can reflect that with rush fees, after-hours fees, custom requests, travel time, and more.

Three good moments to adjust pricing are when demand is high and you are booked out, when costs have increased significantly, and when you’ve improved your results.

But most of all, communicate with your customers. Some will still push back—just handle it professionally. Explain that if budget is a concern, you can look at an option with a smaller scope. Say, “I hate to lose you, but I understand you need to choose what’s best for you.” Be calm and professional.

For more information and business tips, please contact:

Oswego Area Chamber of Commerce

25 E Jackson St

Oswego, IL 60543

Ph: 630-554-3505

http://www.oswegochamber.org/