Price raise is not something that customers want to hear. There are many who will leave you if you raise your prices unless you do so tactically. When you deliver the news about price raise you have to be very strategic and gentle about it.
Experts have a few excellent tips for you:
Start off by thanking your customers for sticking with you and trusting you. Once you appreciate their presence you can transparently tell them that you have decided to increase prices. It is advisable that you explain your reasons as well so that they understand. Most loyal customers will actually understand easily.
Honesty is the Best Policy
It is important to be gentle but honest with your customers. You can clearly tell them that you are increasing your prices because of the changes in the market. You can also point out that your services are much better than they were when you had first been hired. Of course, you can also tell them that you are open to providing bulk discounts.
Increase Value of your Offerings
Add a feature or two to your offerings so that your customers have a great incentive to accept the new prices. Customers will usually not refuse value, which is why you should try increasing the value of your offerings.
You should first impress your customers to an extent that they want to stick with you even if the prices are increased. That is why you should first over-deliver and show them that you really care. After that, you can increase prices.
There is No Reason to be Sorry
Some entrepreneurs end up apologizing for raising their prices. When you do this you give your customers the upper hand and they will negotiate fiercely with you. Be confident and explain why you are taking this decision.
Profitability Should Not be the Only Reason
Your reasons for increasing rates must be more than just profitability. Your customers should never be under the impression that you are taking this step only for profits. The result of this could actually be damaging. Be careful.
Raised prices should not make you lose your existing loyal customers.
You can raise prices without losing customers as long as you are tactical and strategic. Be honest with your customers and gently tell them why you decided to raise your prices. Also, don’t apologize for it.