Raising Your Prices Without Losing Clients

Some home based business owners operating online are afraid of raising their prices because they will, they think, lose a lot of their clients. But if you feel the need to up your prices to cover your time and expenses, there are ways of raising your prices without losing clients.

One way of raising your prices without losing clients starts long before the actual time comes for raising prices. You see, if you have planned your Internet business right, and you are selling to niche markets, you shouldn't really be competing one price to begin with. It's a myth that people are more sold on pricing than they are on anything else.

Sure, there are people who care foremost about price but the typical person, while they certainly do want to pay the lowest price for something that they can, is looking for more than price. The average person wants quality, and as long as the quality is there they are willing to pay for it.

So, in order to be able to raise your prices without losing your clients, right from the start make sure of a couple of things. For one thing, are you selling the highest quality product within your niche?

If you have a reputation for quality, and you are narrowly focused on meeting the needs and desires of people who buy within your niche, when the time comes for your prices to go up your clients will remain with you because of what you provide to them. They will even feel like they were getting a bargain before!

Another thing about product choice: if you are offering something that doesn't rely on trends and fads, but is something that people within a niche are always wanting or needing, most of them are going to continue buying it even when there's a price hike.

Inflation has not stopped people from drinking Coke or buying bread. A wild oil market has not stopped most people from driving their cars, even if some of them do drive a little less now. So, if you have already established a good relationship with your clientele, they will continue buying from you even after your prices go up because they know you, trust you, and you have something they want or need.

And how do you establish that good reputation? By always providing top-notched and highly responsive customer service. Get back to client communications as quickly as you can. Always do what you said you would do. Deliver their products or services promptly and always thank them for buying from you even if it's their 100th purchase from you.

Resolve any issues they have as quickly and thoroughly as you can. Do all of these things and you will rarely have to compete on price. But if and when the time comes when you feel you have to raise your prices, there are a few things you can do to soften the blow.

First, give as much advanced notice as you can that your prices are going to go up, and by how much. Also, give your clients the reasons why you're raising prices. Is it inflation? Have your advertising costs gone up? Do you want to expand your service capabilities?

Clear, honest communication goes a very, very long way, and most of your clients are going to be quite understanding of your need to raise your prices as long as they get that clear, honest communication from you.

 posted by Chris Simpson