As an entrepreneur or propreneur, there may come a time you will have to tell your clients your prices have shoot up a bit. When this time comes, how do you?
I once had a man I gave some kind of work to. I called on him a particular day to do same kind of work only to find out he has doubled his price. I was disappointed because he failed to notify any of his clients. Too bad right?
As a businessman or woman, there are ways to let your clients know about increase in your price, according to Sarah and Paul Edwards (author of Secret of self-improvement), without scaring them away.
1). Establish Preemptive Raises
This method simply means building an increase in the cost of your products in the early days of a new year. Which might be about 5% increase annually. This technique is the easiest way to raise price which will never be a surprise. As you won't have to deal with discomfort of announcing an increase to unsuspecting clients.
2). Raise Price For New Clients Only
Sarah and Paul Edwards advised, to avoid displeasing dependable clientele, you can raise fees for new clients only. Your valued repeat customers are so desirable, you may want to reward them for their loyalty. But as time goes on, let your old customers know about the increase.
3). Gradually Break The News
To avoid disapppointing your clients, announce the price increase in advance. If possible, send a letter, make a post around your office where everypne sees it to notify them. You can also specify when you will be raising your fees and what it will be. Make the announcement as far in advance as possible. Allow ample time for the notice so that your clients can adjust.
4). Provide A Grace Period
To accomodate existing customers when raising your fees, you may want to delay their fee increase. Tell them that you have raised your prices but that because they are such a valued customers, you will not be raising their until some other time in the future.
5). Pretest An Increase
Before raising fees for existing clients, you can test the waters with new clients. If they don't balk at your new fees, you will know you are on solid ground to raise prices for existing clients. This is true if the new price is within what others are charging. Also, your satisfied customers would have little to gain by risking working with someone else that charges same price.
As a businessman or woman, how have you been telling your clients, customers about price increase? Endeavor to share with us.