6 Ways to Raise Prices Without Losing Customers

Deciding to raise prices is never an easy choice. Every company manager fears their price increase will drive their customers away from them and their competition. And while that is a possibility, it is essential to know that it doesn't have to be so. There are ways to raise prices without losing customers, especially if you fully understand why you are raising them for.

Raise prices without losing customers

A price increase should never be something you try to hide from your customers. Especially if it is a substantial increase. Before long, they will notice. And once they do, they might feel you are trying to get more money from them simply out of greed. A far better practice is to be open about your price increase and count on your customers to be reasonable. In a vast majority of cases, this does the trick.


Explain why you are doing so

"Hey guys, guess what! We are raising prices! Why? Because we can!" As you can imagine, this will drive customers away from your brand. Instead, your goal should be to carefully outline the precise reasons why you are raising the prices. Ongoing recession, inability to financially sustain your company, etc. All those are viable reasons to increase your prices. And the better you understand those reasons, the more effective you will be in justifying your price increase to your customers.


Point out the precise reasons

When dealing with customers, it is essential to remember that they are not some group of generic people. Every business, large or small, deals with a customer base. And if you are to tackle your marketing, sales, and customer management with due care, you need to understand what your customer base is like. Knowing so will also be beneficial if you wish to raise prices without losing customers.


Different customer bases will react better to various explanations. For example, if you have a customer base made out primarily of young professionals, you can look to be more direct and outright. Explain the financial aspect of the price increase and why it is essentially necessary. On the other hand, if you primarily deal with elderly people, you ought to forgo explaining the financial aspect and focus more on emotions. Mention that it is not your desire to get more money from them but to continue providing the same quality of service. Your message needs to resonate with your customer base if it is effective. And the only way to achieve this resonance is to understand who you are speaking to.


Don't beat around the bush

One thing you want to avoid with all customers is trying to present the price increase as something else. Some companies will call it "Change to the pricing system" or "Price adjustment". Both you and your customers will know what you are trying to do. And the only effect your efforts will have is to irritate your customer base. So, don't beat around the bush if you wish to increase prices. Instead, call things as they are.


Outline the benefits of the price increase

It is always easier to accept bad news if you also get some good news with it. So, try to outline some benefits your customers will get by increasing your prices. To be effective, you need to understand what your customers will like vs. what will be financially viable. As your increased prices are here to stay, you may take the next period as a transition. By offering benefits during this period, you stand to maintain your customers and ensure that they will continue to do business with you. Ideally, your price increase will also bring some long-term benefits to customers. Just don't forget to mention them and give examples of how they will impact the everyday customer.


Communicate with customers

Keep in mind that the discussion about the price increase shouldn't be a one-and-done deal. Regardless of how you explain it, your customers will likely have questions. Even if they don't, they will likely have complaints. And while you may feel inclined to hide those complaints, you really shouldn't. Instead, use them as another way to communicate with customers and explain your reasons. In fact, we would advise you to ask for their input and establish a new line of communication. Improving business through customer feedback is one of the ways to involve them. Make sure that your customers feel appreciated and that you keep tabs on how they perceive your price increase.


Don't say that you are sorry

The final thing to remember is that you don't want to say that you are sorry for the price increase. You might say that you are sorry about the recession or that your company has extra expenses. But don't say that you are sorry for increasing prices. By saying you are sorry, you imply that you had other options but went with this one. So, don't do it. State the reasons why your increase is justified and be done with it. You should only say that you are sorry if you've made a mistake. And a price increase out of necessity is never a mistake.



As you can see, there are ways to raise prices without losing customers. The main idea behind them is to understand that this is a process, not a single step. You will likely lose customers if you simply increase the prices with lite notice. But, if you explain your reasons, communicate with your customers, and outline the benefits of the price increase, you are far more likely to keep them. You always want to ensure that your customers feel appreciated, not just as money givers to your company.


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