How to Increase Price, Win Business and Boost Profits…
Not a catchy title but it definitely covers three of the issues I’m most often asked to sort out.
I thought this week that I’d address the issues by looking purely through the ‘How to Increase Price’ lens.
To help I’ve outlined three case studies that will guide you through how you can do the same for your business…
How to Increase Price
Knowing how, when and by how much to increase price can leave some business leaders paralysed by fear, disabled through indecision and downright nervous about the whole process.
How to increase price…and get away with it?
That’s the real question they ask me. Always with an air of faint disbelief, almost as if such a request is at best an oxymoron and at worst a fairy tale expectation…
But that’s not the case at all.
Where is Your Start Point??
Knowing how to increase price is as not simple. It starts with talking a cold hard, objective and honest look at your market, your sectors, your specific and separate client types, your competitors, your offering, your position, your brand.
But, before I detail what’s worked for others and suggest how that might work for you, let me highlight a few things you’ll want to consider when you’re thinking about increasing prices:
Of course, this is only my view, and by all means I’m happy to be proved wrong, let me know!
Your Easy to Follow Guide – How to Increase Price:
1. Don’t increase your prices wholesale across the board. Test your price increase. Select different markets, different client/customer groups, then test, test, test and test again
2. Never label your price increase as being ‘in line with inflation’ or whatever else you can think to lamely justify your hike…
3. Never think about increasing your price unless you can justify your value and any additional value
4. Higher prices may not scare your prospects/customers as much as they scare you…one sharp well justified price increase is better than 4 price increases over 12 months
5. Don’t think about doing anything with your price before you’ve done your market research…with your customers and the customers of your competitors…
6. Don’t test your price increase out on existing buyers before you’ve tested it on new buyers
7. Big price increases must be accompanied by a commensurate hike in value and a robust ROI that you can prove
8. Never underestimate or try to second guess where your value comes from in the mind of the buyer and how you can deliver real value in very simple and cheap ways, meaning more sales and more profit for you
9. Value to one buyer is not the same to all buyers – sometimes you need to package your value and your prices. This is easy and can help you make huge profits for very little work, you just need to know your market and what they want in each sector.
10. You have a right to collect profit…the profit you collect will be directly in line with the value you offer. Therefore, low value, low prices, low profit…you see how it works…forget about increasing prices until you can increase value.
11. Successful campaigns to increase prices rarely work with mass email/mail/marketing campaigns. Well not unless you’re selling something very, very, very special…and chances are the majority of B2B firms aren’t in that category, so please, don’t do it…
How to Increase Price, and How to Increase Sales Performance…
Because increasing price and seeing a decrease in orders is not what you want (even though this can sometimes work for you, but that’s another blog for another day)
Well, I could go on, but here’s a set of three case studies detailing how three firms increased their prices, increased their sales conversion, boosted profits and lived to tell the tale. You can read all about it here, just hit the link
For additional insights in how to increase price and how to create value in your business so you start to think positively about increasing your prices, check out these free reports. ALL instant downloads and totally free!
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