Talking about money makes everyone feel uncomfortable. Rising prices and the cost-of-living crisis are a hot topic right now. Pricing is difficult enough and a crystal ball would be handy to make the change last for longer, but the biggest anxiety for small business owners is how best to tell clients about a price rise. The big worry is obviously about losing clients completely. Here’s our guide to raising your prices with confidence.
Communication is key
Let’s face it we all want to know sooner rather than later so we can plan accordingly. You may even have already been asked by regular clients for their own budgeting process if you are looking to raise your prices.
As soon as you know then, consider hinting that a rise is coming. But you know the next question will be ‘by how much?’ so you need to have this detail ready too.
We are big fans of a job list. Such a substantial change to your business can lead to so many tasks so take some time to think through everywhere that your prices are. Here are three that might get missed:
- Have you shared any pricing with long-lead editors for PR? They may publish the old price just as your rise goes through, so get back in touch with them.
- Facebook services may need editing to update your prices.
- Any marketing material/graphics you use with prices on. Update and dispose of old materials so they cannot accidentally be used.
Don’t apologise
Keep your wording clear. Explain why you have chosen to raise your prices and the factors you have taken into account. Make sure there is a nod of appreciation to your customers. There is no need to say sorry.
Don’t hide it away
We recommend sharing this information everywhere from emails, social media, point of sale materials and training your team to share the news too. That includes regularly sharing your posts and stories on your social channels. Why? Because, despite your best efforts, someone will miss the one and only email/post/poster.
Prepare for questions (and even strong objections)
This is essential for any staff in a customer-facing role. Make a list of what type of questions and comments you think they are going to make and work on your responses from this. Edit over these with a positive slant to reinforce those benefits for either your service or product.
It may be an opportunity to show other options you have, so customers have a choice and can make good swaps. With a date of the pending price rise in mind, they may even help boost sales in the run-up to the price increase for those wanting to take advantage of a lower price.
Have at the back of your mind through the transition, just why you are doing this as a small business and your worth. Don’t sell yourself short and if you need any help getting your communications right and all your assets in order, then just get in touch, we’d be happy to help.