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Ten simple and effective ways to raise prices

Every entrepreneur can say with confidence that raising prices is a morally difficult and unpleasant task. Everyone is afraid of scaring customers, losing profits, etc.

But in a crisis, reviewing prices is not a whim, but a necessary event. The main thing is to conduct it correctly, then the buyers will remain, and the profit will remain, and even if some of the buyers are eliminated, then new, more profitable partners will definitely come in their place.

The last few months have become a serious test for Russian businessmen – high inflation has undermined the pricing of the vast majority of entrepreneurs. If those who are associated with foreign partners in the purchase of ingredients and supplies reacted to the jump in the dollar exchange rate in the first place, then they were followed by fully domestic producers who did not want to make a big profit because of a significant increase in prices for all other goods. The process became a closed cycle and became irreversible.

If you’ve been thinking about raising prices all along but haven’t decided, now is the time to take action.

The first option. Talk honestly with your clients

Find a way to tell your customers that raising prices is a forced measure, and is the only way to keep the business “afloat”. It doesn’t matter how you communicate this information to your partners.

Choose the method that is most convenient for you and your business: you can place information on the main page of your site, contact customers through a group in a social network, you can make an e-mail newsletter, and so on.

It is worth focusing on the fact that the price increase is a forced measure and allows you to maintain the quality of the service performed at the proper level.

A variant of the second. Increase your prices in several stages

Practice shows that the vast majority of people do not pay attention to the price increase, if the increase is 5-10%. It is better to raise prices with a break of 1.5-2 months. This figure is quite consistent with the attitude of buyers in times of crisis, and even such a small increase in price can increase the company’s profit if the range of products is large.

If the monthly sales are “one-piece” and only 30-50 products or services are sold per month, then it is not necessary to stretch the price increase by several stages. It is better to raise prices one-time, immediately by 30-40%, so even though the number of sales will decrease, the profit will still grow.

In addition, a significant price increase will significantly reduce the costs associated with the delivery, storage and warranty service of goods.

The third option. Increase prices selectively

To attract customers, increase prices selectively. Some of the price tags can be left unchanged, and some can even be lowered. This move will help to attract the attention of customers, it is for these positions that customers will come to you, and in parallel they will buy more expensive products.

Ten simple and effective ways to raise prices

When you begin to communicate with customers about price increases, you should pay their attention to the fact that some products have remained in the same price range. For even more emphasis, you should make a separate catalog for customers with products that have retained their prices.

Another benefit of selective price increases is the ability to track how the company’s profit changes depending on price changes. It is better to save the test results and apply them in the future.

Another move that can be made is to increase the price of the most expensive product. You need to give the product the status of a VIP product, which will attract a monetary audience. Most likely, VIP clients will not have any questions about the price increase, which means that each sale will bring maximum benefit and profit.

Option four. Start a campaign

Of course, as a seller, you can’t afford to sell products to customers for less than you purchased them yourself. But you can sell products in sets – then the profit from the sale of one of the products will fully compensate for the loss from the sale of another product in a set.
The fifth option. Improve the skills of your employees

The crisis is a good time to think about which employees are working 100%, and who just takes a place in the staff and spends the hard-earned money of the company. The more closely you look at your employees, the better you will be able to select the most valuable employees: they will be able to convince customers of the need to make a purchase and will not spend extra money on themselves.

If even the best managers can’t handle sales, then you should conduct a series of trainings, improve the vocabulary of employees, the ability to work with objections, and so on. Such events will quickly bring the desired result.

The sixth option. Cut down expenses

Take a good look at the items of expenditure and leave only those that are exactly necessary for the development of the company. Try to make funding cuts deliberately – try to save on internal materials in the company, on packaging and delivery of goods, but it is better not to cut advertising articles, but rather to expand and Refine them.

Good advertising is a great way to show your customers that you are working and staying “afloat”, as well as a great way to attract new customers from other audiences.

Option seven. Offer more

Don’t rush to just raise prices – make sure that the price increase coincides with the change (expansion) of the range. This will help to change the emphasis somewhat – instead of simply increasing the price, you expand the range, put a lower price on some positions, and raise some of them.

A similar trick can be done with a mono product: try to make a larger package and raise the price along with increasing the packaging. Naturally, the focus should be on increasing the volume of the product in the new release format.
Ten simple and effective ways to raise prices

The eighth option. Improve service

Try to convey to your staff the information that there will be dissatisfied customers in any case. Of course, in a crisis, many people are just on edge and can lose their temper over small things.

Employees must remain calm and balanced in all situations. Most of the buyers choose the attitude, not low prices. Therefore, train your staff, work with stressful situations, and thus increase the number of loyal customers.

The variant of the ninth. Work on loyalty programs

In the last global crisis of 2008, the Starbucks coffee chain sank significantly in sales. Most of the customers preferred to drink coffee at home, rather than buy it in a cafe.

That’s when the my Starbucks Reward loyalty program was created, which assumed that customers put a large amount of money on the card, and then pay with a loyalty card. Bonuses and stars are collected on the map, and these points can be used to pay for subsequent orders.

The essence of the program is very simple: the more you buy, the more you get gifts. The more stars you accumulate, the more often the customer gets a free drink, etc. And the cafe does not lose profits, and customers are happy to collect imaginary points for the sake of receiving free gifts.

Option ten. Tell your customers about the quality

You should constantly remind customers that nothing happens for nothing. If someone managed to maintain the price of a product in a global crisis, it means that the quality of the product has suffered.

If you choose the path of stable, excellent quality, then do not hesitate to talk about it loudly. You can write about this site, make mailing lists, and remind customers of their own quality certificates.

After all, the low price of a product is not a guarantee of health and well-being. In most cases, treatment after eating and wearing low-quality products will be much more expensive than buying an expensive, but high-quality thing.

Most importantly, do not be afraid to raise prices for goods and live at the same pace with the market.

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