How to Raise Your Prices without Losing Clients
If you own a spray tanning business, then you may have faced the situation of wondering whether to raise your prices or not. In order to stay in business, you need to ensure you make a profit. Many business owners struggle with this decision, because they do not want to lose their valued customers. Follow a few tips and guidelines to see how you can raise prices without losing your customers.
Be Honest with Customers
Be ready to explain the reasons for your price increase to customers who balk. Not all customers will complain, but those that do need an honest explanation. Make your customers feel important. Increase your customer service to accomplish this. Many customers choose to do business with companies that offer high-quality service and make customers feel valued without considering the prices. Customers can always find a lower price, but can they find a company with the best customer service in your industry? This is how you increase the value of your company in your customer’s mind.
Warn Customers in Advance
When you decide to raise your prices, you should give your customers advance notice of at least several weeks. Strengthen your relationship with your dedicated customers, and you will not have to worry about losing them. Demonstrate your willingness to resolve any issues or problems they have with your products or services.
Target Affluent Customers
Create a direct-mail campaign that targets affluent customers in your city. It is easy to locate these lists by demographics if you look for mailing lists for sale. Many companies offer mailing lists that target different demographics that include income, age and other helpful information. A direct-mail campaign should have your new prices on brochures or flyers. If you cannot afford a direct-mail campaign, then hire someone to put flyers on the doors in the neighbourhood. Check with local laws to ensure you are following the rules and regulations regarding solicitations in your city.
Know When to Raise Your Prices
Many business owners simply wait too long to raise the prices because of their fear of losing customers. However, if you wait too long, you could put your business at risk of failure. Most people do understand that businesses can and should raise their prices due to business expenses. Your valued customers will likely understand and continue doing business with you.
Research your business costs on a regular basis, so you can predict when to increase your prices. Small businesses often struggle with making a profit, but when business expenses go up, then you must make a quick decision to stay in business. Staying ahead of the game will help you remain calm while raising prices.
It is better to raise your prices all at once instead of a gradual process. It is normal for customers to complain a little about price increases. Do not let it get to you, since the health of your business depends on you. Business ownership is a worthwhile goal as long as you are making a profit.