Why you need to raise your prices…and not apologize for it
One of the hardest decisions business owners have to make is deciding how to price their products or services. All new business owners face the same problem–growing their customer base. Existing business owners face the challenge of retaining their loyal customers. Sometimes, business owners make the mistake of selling themselves short in order to gain more customers. However, you don’t have to lower the worth of the products/services you have to offer to do so. In fact, low prices are often seen by consumers as bargain buys as opposed to value buys. Learning how to set competitive pricing throughout each stage of your business’ development can prove to be the most critical element of your business’ success. You don’t have to apologize for raising your prices either! The right customers will continue to support you because they value what you are offering. Here are 6 reasons why you need to raise your prices and be unapologetic when you do it!
- it sends a signal to potential customers that you are valuable and have quality content
The saying “You get what you buy” is definitely true. While you want your prices to be cost effective for your customers, you don’t want to short yourself in the progress. If you’re putting in a lot of work in your business and offering a quality product or service, you deserve to be adequately compensated. When you short yourself, you risk the chance of customers seeing your products or services as less valuable. Most people are willing to invest in quality products and services and will not hesitate to pay what it’s worth. Don’t shortchange yourself.
- It allows you to be properly compensated so you have incentive to provide the best service
It is important to avoid burnout as a business owner. Many business owners work beyond their physical limitations to find new customers. However, half of the effort you’re putting out to gain as many customers as possible can be reduced by proper pricing. When your products are priced competitively, you don’t have to constantly seek out a bunch of new customers, and you can focus on providing quality products and services to the customers you have already–at a price that works for you!
- It will drive you to produce better content, services, and products to live up to the hype
Once you develop a reputation for providing quality products or services that are competitively priced, new and old customers will expect more from you. They will challenge you to introduce new and quality products unique to your brand. Competitive pricing allows you to free up more time to develop new products and services that will help you maintain your reputation and make you a go-to source in your industry.
- You increase the longevity and sustainability of your business
Longevity and sustainability should be a part of every business owner’s long-term goals.
Every business will face challenges. With an economy that can change at any moment, it is easy to feel uncertain about your business’ potential for longevity. However, when you’re able to pay your bills with ease, you have more of a chance of your business succeeding. Additionally, you can make work wiser choices when it comes to how ethical your brand is and how it affects the world around you. Pricing makes a difference because the right price will assist you in achieving your longevity and sustainability goals. It can also help you provide better wages and benefits for your employees and set a standard of not only being a great business but an even greater employer. Ultimately, setting competitive pricing and continuing to raise those prices from time to time will help your company withstand the many challenges all businesses face at some point and work through them without hurting your bottom line.
- You can increase the quality of your customers
Many entrepreneurs make the mistake of believing they have to accept every customer. The truth is, setting competitive prices helps you to weed out the clients that simply aren’t a right fit for you. Every business owner has had their share of bad customers. When you raise your prices, often, those bad clients lose interest and move on to the “bargains.” This will open up your business to my quality customers that you will value and who will appreciate what you have to offer.
- You don’t have to work as often
It comes down to simple math. The more competitive your prices are, the less work you will have to do. What many business owners fail to realize is that business growth does not only depend on gaining more customers. When developing your business model, it is important to look at both the number of customers you have, as well as how you’re pricing your products and/or services. In most cases, more customers mean more work. A consistent group of regular, high paying customers can encourage substantially more growth than a lot of one-time-only customers. Additionally, regular price increases can yield higher profits, resulting in you having to work less to meet your financial goals.