The intersection of Marketing, Creativity and Innovative Problem Solving.

Friday, March 15, 2013

Increasing the Prices Charged

I've had some questions about this recently... "How can I charge more without upsetting my customers?"

This is definitely a legitimate concern. Once consumers get used to a price, they are not thrilled about a price increase. The easiest solution I see, is to create more value at the higher price point. Give them a little bit more, so it's easier to justify paying more.

This works in other situations too... Let's say you are considering offering a Groupon type promotion, but you're not thrilled with discounting your product or service so deeply and giving part of what you do make to Groupon. Create a "VIP package" which has a higher price point, but also gives the customer something extra. It's great if the something extra doesn't cost you a lot... an extra 15 minutes of private lesson time with a topic authority, a free seat in a future seminar/webinar, free downloadable materials offering tips/tricks/how-to tutorials, signed or autographed merchandise or memorabilia... you get the idea. Give them something that is valuable and worth it.

Keep the original priced option, but start to phase it out. You want to train the customers to look for stuff that is more valuable, and choose this on their own, rather than being forced into paying more just because you decided to raise your prices. Happy customers lead to happy businesses!

No comments:

Post a Comment