5 Little-Known Things You Must Know Before Raising Your Price To Avoid Compromising Sales
photo credit: Nina Ruth Photography | creative direction & styling by us
Have you been wanting to reset your pricing? Or maybe you’ve been debating if you should raise your prices but worried that you might lose some customers?
You’re not alone, my friend. This is one of the most common questions we get from women entrepreneurs around the world!
If you’re reading this, you probably have heard or read about how you need to raise your price to scale your business. But we all know that it’s not as simple as just changing all your prices overnight, right?
Pricing is a crucial strategy in your business, your brand and your marketing.
Now, before you go ahead and announce to the world that you’re raising your prices, here are 5 key concepts I want to make sure that we share with you.
#1 Pricing is the perceived value
We make all of our purchases with emotions, and we justify them with logic afterwards. From your choice between regular and organic produce, the milk you buy, the phone you use, to the car you drive, the clothes you wear, and the restaurants you go to… You are willing to pay the price tag because you think that thing is worth the price. It’s all about what you think is the perceived value.
So how do you increase people’s perceived value of your offer and make the emotional decision to say yes? Create an experience that’s worth sharing and a brand that resonates with people.
When people feel that you are worth the price, you are worth that price, and they will be happy to pay a premium to work with you.
Click here and here to learn more about what a successful brand actually means and how you can build one.
#2 Pricing Affects Your Branding & Marketing
What marketing message are you sending with your pricing? How are you positioning yourself in the market? Do people feel that your pricing aligns with your brand and everything you do in marketing? Does your price tell the same story as the rest of your business?
Want to know how to stand out from the crowd? Click here and read about the myth of differentiation and how people are getting it wrong.
#3 What Pricing Does Your Target Audience Expect
Your pricing is part of your brand and your business, which is a strategy for you to multiply more of what you do for your target audience. Based on the needs you’re fulfilling for your target audience, does your pricing support the work you do and the values of the people you serve?
While raising your prices is a good strategy for you to serve your customers better, realistically speaking, what are your target audience willing to pay for services or products like yours? Can you still serve your target audience with the price you wish to charge?
Still looking for some help on defining your niche? Click here to learn how to find your target audience.
#4 What This Means To Your Existing Customers
What does this price increase mean to your existing customers? What might their emotional response be to you raising your prices? Is there something to be done to make this change seamless to them, or to help them feel good about their smart decision to buy from you early?
If you want to know more about how to cultivate and grow a loyal customer base, click here to read how you can build a connected customer journey.
#5 Allow Your Pricing To Evolve
As your business grows and as you learn more about how you can best serve your target audience, give yourself, your business and your offers the chance to grow and evolve. Just like every part of your business, pricing is a tool to help you do more of your work for the people you’re serving. Do your best to make an informed decision on your pricing today, but give yourself the permission to change it again when needed later on.
You know those pricing tactics that tell you to end your price in the number “9” or “7”, or how some people use aggressive selling through tactics to pressure customers to commit right away. The thing is, these tactics work, but by focusing so heavily on them, you’re also assuming that your customers are price shoppers, and that they would be affected by which number your price ends with.
A great brand shouldn’t have to spend so much energy and resources on getting the correct numbers. A great brand should focus on building a brand that people want to buy from, so much so that they are telling other people about how great it is.
It’s your turn. Let’s start with pricing strategically and align it with your stand-out brand, shall we?
Don’t forget to grab your seat at our FREE training, so you know how to grow your profitable brand people love AND a loyal customer community who keep buying from you!