5 Tips for Successfully Increasing Prices for Your Small Business in 2023
Updated: Jan 4
Telling small businesses about the secrets and strategies that big businesses use to increase their profits.
As a small business owner, it's important to keep your prices competitive while still ensuring the long-term profitability of your business. But how do you increase your prices without turning away customers?
Here are five tips for successfully raising your prices in the new year:
Tip #1 - Diversify Your Revenue Streams
Look for compatible product offerings (new or existing) and offer them as a package deal at a newly priced offering. This can help you diversify your revenue streams and increase your overall pricing power.
Tip #2 -Analyze Your Sales Volume
Take a look at your top-selling products and services. These are the items that are most likely to bring in the most revenue, so focus on them first. But don't forget to consider your margins - not all top sellers have the best profits and you don't want to focus on products and prices that won't help you walk away with more profit for your business.
"Your top selling products or services aren't always your most profitable."
Tip #3 - Offer Discounts to Loyal Customer
Consider increasing prices for new customers while still offering discounts to your current, loyal customers off the new price. This can help keep your current customers happy and make them feel like they're getting a good deal. Another alternative is to keep prices flat for your existing customers and using pricing for new customers to cover the gap.
Tip #4 - Research Your Competitors
It's important to know what your competitors are charging for similar products and services. Take a look at their websites, ads, and pricing to get an idea of what the market will be. Google Ad is your friend.
Tip #5 - Negotiate With Customers
Don't be afraid to negotiate with your customers. For example, you could increase your prices by a certain percentage, but only if your customers agree to buy more from you of a new or existing product. Alternatively, you could increase your prices gradually over time.
What it all comes down to
By following these tips, you can successfully increase your prices without losing customers. Just be transparent with your customers and let them know why you're raising your prices. They'll appreciate the honesty and you'll be able to continue providing them with the products and services they love
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To get more in depth strategies for this topic - check out the podcast episode we did here