Our customers are the only investors we've ever had
We've had investors since day one, even though they've never asked for shares. They're our customers. And seeing it that way changes how you look at everyday work.
Leer más →How to raise prices without losing customers
Raising prices is scarier than it should be. If you give notice, clear reasons and something extra, most customers understand.
Raising prices is one of those jobs everyone puts off.
It's scary. Scary that customers will be annoyed. Scary that they'll leave. Scary that you'll look greedy.
And while you put it off, your costs go up, your product gets better and your price stays exactly where it was.
When it's time to raise prices
- When your costs have gone up and your margin has narrowed.
- When what you offer has improved and the price doesn't reflect it.
- When you have more demand than you can handle.
- When you haven't touched it in years. Inflation alone is reason enough.
How to raise prices without losing customers
1. Give notice
Nobody wants to find out from the invoice. Give a month or two's notice. Give people time to plan.
2. Explain why, briefly
No need for a three-page letter. One or two clear reasons: costs, improvements, what's coming.
Explaining isn't apologising. It's respecting the customer.
3. Add something
An improvement, an extra service, a direct support line. It isn't required, but it helps the increase feel like an exchange rather than an extra charge.
4. Treat existing customers well
You can raise prices for new customers first, and existing ones later. Or keep your longest-standing customers on the old price for a while.
It isn't mandatory. But rewarding loyalty usually pays better than losing it.
5. Say it with confidence
Announce the increase hesitantly and customers will argue with it. Announce it calmly and most will accept it.
A price that's never reviewed isn't a stable price. It's a price that loses value every year.
What to say in the notice
A simple structure:
- What's changing and from when.
- Why it's changing, in one or two sentences.
- What's still included, or what's improving.
- Who to contact with questions.
Nothing more. No drama.
What if someone leaves?
It can happen. And it's almost always less serious than you feared.
Often, the customers who leave over a reasonable increase are the ones who took the most time or valued your work least. The space they leave gets filled by customers who do fit.
The underlying idea
Raising prices isn't taking advantage. It's keeping alive a company your customers need to keep existing.
If your product improves and your price doesn't, sooner or later you both pay for it.
P.S. On choosing carefully who you sell to: I want fewer, better customers.