Price Hike Without the Heartache: 10 Sneaky Ways to Boost Your Bottom Line
If you’re running a business or selling anything worth a dime, you’re going to have to hike those prices at some point. It’s just the way the game is played.
Now, I know what you’re thinking: “How the heck am I going to do that without my customers going ballistic?” Well, fear not, because I’ve got your back covered with these ten commandments of price increase without sending your customers packing.
1. Time it like a boss:
Don’t go bumping up those prices when your sales are tanking. That’s a one-way ticket to disaster. The best time to give those digits a boost is when you know for a fact that your customers are head over heels for what you’re offering. Strike when the iron is hot!
2. Sprinkle on some extra magic:
Here’s a slick move for you. Instead of slapping a higher price tag on your product, why not offer some sweet additional perks? You know, like VIP treatment, express customer support, or even free shipping. Time is precious to people these days, and if you can save them some of it, they won’t mind coughing up a little extra cash. Toss in a freebie or two while you’re at it!
3. Downsize, but with style:
You’ve seen those sneaky restaurant wizards reduce serving sizes but keep the prices the same, right? Well, that trick also works beyond the world of food, my friends. You can shrink down your product packaging or cut back on the quantity, but do it subtly.
We don’t want the customers catching on too quickly and getting their feathers all ruffled.
4. Work your number mojo:
Let’s play a numbers game, shall we? Say you usually sell a 10-pack of premium goodies for rs 1,000, and you need to bump up the price by 10%. Instead of slapping Rs 1,100 on it, get creative. Create different-sized packages—maybe a 3-pack for Rs 350 or a 6-pack for Rs 700. That way, when your customers see the Rs 350 price tag, it’ll feel like a sweet deal compared to the other options.
5. Spruce it up:
People dig improvements. If you’re planning to jack up those prices, make sure you’ve got something to show for it. Amp up the quality, revamp the packaging, or give your product a new makeover. If your customers have been singing your praises, they’ll be more willing to swallow that price pill.
6. A good Discount never fails.
We all know some penny-pinchers out there’ll bolt at the sight of a higher price tag. But fear not, my savvy entrepreneurs! Raise your prices, but offer temporary discounts that bring them back down to their original levels. Those bargain hunters will swoop in for the deals, while the rest of your customers won’t bat an eye. It’s a win-win!
7. Bundle up
If you’re worried about the pain of a price hike, bundle up your products or services, my friend. Give your customers that warm fuzzy feeling of getting more bang for their buck. Picture this: you’re running a beauty salon, and you decide to add a pedicure or foot massage service along with your hair colour treatment. Suddenly, that price increase feels like a freakin’ steal!
8. Target the big fish:
Sometimes, you’ve got to cast your net in a different pond. If you’re itching to raise those prices by a good chunk, it might be time to go after a new, more well-heeled customer base.
I’m talking about the high rollers, the ones with bigger budgets. Even if your increase is modest, expanding your target market to include some fancy folks can help offset any customers you might lose in the process.
9. Brace for impact:
You can’t please everyone, and you’ve got your reasons for increasing those prices. But don’t forget your VIP customers—those who bring in 80% of your revenue. Take the time to explain the situation to them, whether it’s through a personal letter or a good old chat on the phone. Most of the time, they’ll get where you’re coming from, and you won’t face a lick of backlash.
10. Think ahead
Hiking those prices isn’t no joke, so you better have a game plan. Take a good hard look at your costs, factor in any future escalations, and plan accordingly. Nobody likes a business that jacks up prices left and right, so be strategic and think about the long game. Plan at least a year ahead, my friend.
Follow these ten commandments of price increase, and you’ll be laughing your way to the bank with healthier bottomline.
Now go forth and conquer!
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Hemant Mishrra
About the author: Hemant is the Founder & CEO of branding and marketing firm ”Neeti Brand Accelerator” in Mumbai. He is a brand strategist and has worked with more than 150 brands during last two decades. He is also mentor and coach to SMEs and startups. You can visit the website www.www.neeti.biz. You can contact him at hemant@neeti.biz
