So how to raise prices without losing clients?
It’s natural to be concerned that a price increase may cost you clients, but that doesn’t have to be the case.
How Can I Raise My Price Without Losing Clients?
In the above video I talk about a hot chocolate company in New York called “No Chewing Allowed” and how they have premium prices.
The psychology of pricing: “You get what you pay for.” A lot of business owners and entrepreneurs tend to overlook how they are positioned in the market.
A premium product in your business is more than just the price, it’s about the experience.
Often we sell just one product and leave it at that but what we don’t realise is people want more from you. Its important you have a range of products that increase the more you offer, this allows you to charge people that can afford it and want it more.
No Chewing Allowed understand there is a place for a premium product. All around them are people selling Hot Chocolate for $2. The $2 stores are empty, they have to work hard to get clients.
Just because your competitors charge $2 does not mean you need to charge the same. No Chewing Allowed charge $5 and have a line around the block with people waiting to buy from them.
They have focused on their positioning in the market, they are awesome at telling their story on social media and this keeps them really busy.
Lots of businesses are scared to charge premium prices in their business. What you find is actually when you charge premium pricing is you attract more people.
People will think there’s got to be something good about you charging premium prices. Often being the cheapest in your market is really hurting your sales.
NOTE: In order to charge a premium price, you have got to make sure that you have a good product. You need to be willing to put a premium on it because that’s the way to make profit.
The guy that’s making $2 chocolate is probably struggling to get by. They probably are not going to make much profit in their business. The guy from No Chewing Allowed are absolutely going to make a fortune with their $5 hot chocolate.
This is the same with all businesses. Be the one that is premium priced in your industry. You’re going to be profitable, successful, and be able to serve your customers with better service.
Dont Be The Cheapest
If you go cheap, you’re not going to be as revered in your industry. You will not going to be able to give them the quality of the service that you want to. That’s going to mean that you’re not going to be as effective.
If you are too cheap, you will attract too many clients and not be able to give them all a good service.
So make sure you look at charging premium pricing, Once you do, you will see your business go to the next level.
Here are some posts you will find useful.