how to raise prices without losing customers
TRANSCRIPT
How To Raise Prices Without Losing Customers
Most business owners are reluctant to raise their
prices.
All things held constant though, even if you lost a significant portion of customers,
you would still make more money.
By raising prices 10%, your profit margin will be more than enough
to offset those lost customers.
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The Three Most Effective Ways To Raise Prices
1) Rather than raising prices at
contract renewal time,
don’t use a contract and
raise mid-season
If you don’t have a contract, you don’t have competitors trying to get
your clients’ business at the contract’s end.
Also, most businesses aren’t prospecting as heavily mid-season.
2) Only raise prices on
underperforming clients
Figure out which clients you are breaking even on or even losing
money on and only raise those prices.
• Don’t know how • Don’t have the
confidence
Most businesses don’t raise
prices because:
Many are scared to raise prices because are
afraid customers will leave, even if the current
profit margin is unsustainable.
Business owners must understand though that
there aren’t awards for the MOST clients… you want
the BEST clients!
If you are unsure about raising prices on old clients
for fear of losing them…
3) Raise prices only on new clients
This won’t offend existing clients, and I think it will show
you the value a healthy profit
margin enough that you’ll eventually raise prices on all
clients.
Service Autopilot can help figure out which clients are underperforming and
help keep track of job costs.