Price Increase?
If somebody told you you were expensive, would you be flattered or insulted?
I’ve had 2 conversations about this in the last few days. One person thinks they’re struggling to make sales because they’re expensive. The other is quite deliberately expensive so that they weed out only the very best customers!
I think pricing will always be one of the most challenging areas of building a business (although never quite as difficult as finding and managing the right people – that always needs a few miracles thrown in along the way!)
It’s no wonder that conversations about price increases can lead to hot sweats and hiding behind the sofa though, is it?
Words like ‘expensive’ are only given meaning when you add context. So, if you’re somebody who gets sucked into the BBC’s constant wittering about the cost of living crisis and the permanently impending recession then you probably think being expensive is terrible because it means people won’t be willing to pay your price, or will judge you as not being good value for money.
Whereas somebody who’s not afraid to increase their prices and who recognises that they deliver amazing value and that their expensive price tag is actually a mark of quality would never entertain those thoughts of being TOO expensive.
There’s a lot of documented pricing psychology that very clearly shows that higher prices convey quality.
There are companies who’ve been struggling to make sales and who’ve found that the secret to improving sales was increasing prices. Not reducing them!
It’s easy to think that discounts and deals will attract people and boost sales but they’re soooo bad for business in so many ways. Things like:
- Implying that you’re too cheap to be any good
- Hinting that you’re a bit desperate (so you can’t be any good)
- Suggesting poor quality or value – and only the tightwads out there like that idea
- Attracting the discount chasers who’ll show you zero loyalty but expect miracles
What all this means that increasing your prices is a great business strategy.
But that still doesn’t make it easy does it?
Which is why this week’s tips video shares my 4 favourite strategies to increase your prices without feeling terrified that you’re ging to scare away all your clients.
Have a nosy and then hit reply and let me know which one makes the most sense to you for your own business.
And if you know you need to increase your prices but you’re still hiding behind the sofa instead of taking action, get in touch so that I can help you charge a much better price for the incredible value you already know you deliver.
