Raise Your Prices

This week a woman wrote to ask the best way to raise the prices for her products. She wanted to charge a higher price without turning off her current customers.

That is a good concern. Every business has a main group of customers who provide up to 80% of their business.

Customers in this core group are usually similar in many ways. Make the wrong move and you could alienate the entire bunch. Losing your core customers can spell disaster for a business. A good example of this was when McDonalds spent 20 years courting families with kids, then recently moved away from serving kids alienating their core customers.

I find that customers don't mind a price increase if they can see your product or service is a good value. Since my prices are still lower than most competitors (an important factor for my core customers), I tell them something like this. "The price is xxxx. Others charge xxx more. That means you pay xxx less for a high quality product when you buy from me."

There is nothing wrong with having prices that are higher than your competitors. It must be clear to customers that they are getting important extra benefits.

Kevin Nunley provides marketing and copy writing. Read all his free tips at http://DrNunley.com Reach Kevin at kevin@drnunley.com or 603-249-9519.

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