It doesn't matter what industry your business is in, odds are that one of the hardest decisions you made when getting started was about pricing. This is especially true of service-based businesses. Charge too much, and you'll struggle to get enough customers; charge too little, and you'll work your tail off and have nothing to show for it. Daunting as it was, you got over that hurdle somehow, and set your prices. Well done!
When was the last time you raised those prices, though? If you're like many business owners, the very thought of readdressing the pricing structure makes you uncomfortable. Sure, you'd love to make more money. Sure, your own costs have gone up. But still, you wonder whether a bump up on your end will cause your hard-won customer base to scream, "GREEDY!" and flee.
Before you write off the idea of an increase, consider the benefits you might miss out on:
Problem Customers Love Low Prices Best
We don't need to name names here. You're already picturing "that" customer: hard to serve, always complaining, disrespectful, slow in paying, nickle and diming you at every step. If you raised your prices, they'd be gone in a flash.
Bad Customer Magnet?A crowd attracts a crowd; a crowd of bad customers attracts more bad customers. Bad customers love to brag about the steal of a deal they got. They even tell what they paid, so this new crowd of bad customers demands the same low, low price. Raise your prices, and you'll attract a better crop of clients.
Funny, You Don't LOOK Like a Pork Belly
For low price shoppers, pennies out-number sense. Your products and services are now a commodity. When all that matters is price, no matter how well you serve them, these customers will never become loyal. Raise your prices, and you'll be left with customers who are super-loyal because they value your unique value.
Desirable Clients Come Out of HidingOddly enough, excellent customers might be repelled by your low prices. They may figure you're not certain of the quality you deliver. When you raise your prices, you'll gain access to a whole new market you've been invisible to until now.
You're Already Working Harder, How About Smarter?
If you're selling products, you can make up for low prices by selling higher volume. If you're in a service-based business, you can't, because you're selling your time - a finite source. After you raise your prices, you'll find that that feeling of burnout you've been fighting starts to lift.
After you've been in business a while, it's easy to fall into autopilot mode, doing what you've been doing for years because it's easier than wrestling with new questions as you grow. Pricing decisions are always a challenge, but when you bump up your prices on a regular basis, you'll enjoy so many benefits that the struggle will be well worth it.
