You know what they say, new year =’s new prices. If you’ve been thinking about updating your pricing structure and wondering how do I increase my prices, read on. I’ve created some top tips for how you can increase your prices with integrity in 2021.
1. It’s all about timing
Before you increase your prices, make sure you have a happy and engaged client/customer list. If you are turning away work or are overwhelmed with orders already, you can bet your bottom dollar it’s time for a price increase. If you are struggling to attract newbies, it might not be the best strategy.
Hot Tip – If you’re service based – do you have an annual review date noted to refer your clients back to – such as ‘prices reviewed every July’ and/or prices subject to regular review.
2 – Give people lots of notice
Dropping an increase out of nowhere will likely rub some people up the wrong way. Instead, warm up your audience to the idea of a price increase. Don’t overjustify it though, you don’t need to explain your pricing structure.
With service based you would normally have the notice period in there with your ongoing clients. Retail goods, adhoc services, digital courses etc it’s much more flexible – and of course you can advertise ‘jump in now before the prices increase January 1’!
3 – Add more value
I’m a firm believer in value-adding rather than discounting – my biz is all about value packaging and I jam as much in as I can! It gives you more money in the bank and clients/customers more value. If you are increasing your prices, you need to demonstrate value where you can. Add free gift wrapping, lower your postage costs, add additional reports or contact points if you’re a service-based business. Brainstorm what your clients and customers need and give it to them!
Hot Tip – use Instagrams CTA (Call to Action) tools on stories to ask your followers what they want to see with voting or ask me anything etc.
4 – Improve and innovate
You should be constantly innovating in your business regardless but doing so just before a price increase adds a little wow to your offerings. Update your website, clean up your graphics, invest in professional photography, add sustainable packaging, donate a percentage of profits to a charity. All of those things show your customers and clients you are the real deal which communicates your value straight away.
Thank you Milina Opsenica for my AHHHmazing photos from my rebrand mid this year. Branding photo shoots are super fun – not something I thought I’d ever say 😉
5 – Get ready for backlash
No matter how wonderful your products or services are, there will always be that one client or customer who will reject the idea of paying more money. It’s just the way it is. Instead of being taken aback by said person prepare a few responses you can send them. Outline your value, showcase your results/testimonials and show your audience why you’re worth it!
SUPER Hot Tip – Need a hand working out your pricing? Download my free pricing calculator to work out your accurate cost price and it will show you how much your profit can change.
Questions on how to increase your prices? Why yes of course, just Contact Me and I’ll be happy to help. There is no one perfect way to do this, everyone’s client base is different, your products and what makes you and your business are always unique, so the process will be different for everyone.