Reminder: Before You Give Up, Try Raising Your Prices!

[Jason Starkey]

Not the first time this has been talked about, however the reminder is important. I experienced it again very recently.

When sales are so low, raising your price can improve sales, gain new audience, reset algorithms, or improve traffic/engagement, etc.

Of course do not forget that providing some basic service/offer for free initially is a valuable lead generation/sales technique.

 

[Salamouna]

So i won't lose the clients that i already have

 

[Jason Starkey]

So i won't lose the clients that i already have

Thanks for sharing that info, good point!

In services, I like to continue to offer the VIP price to past clients, and this can keep them loyal for a long time.

My recent experience had to do with reselling a physical item online.

And I also find value in having low price in many situations, this is only one tool in the sales toolbox.

This is like last hope, no clients, and cant go lower in price, then raise price substantially and see what happens!

 

[SirTop]

Raising prices isn't always an issue, honestly.
You just need to find the right target and audience for your new price point... because when you think about it, even the new price you’re raising to is still not up to what some other people might be charging for a similar product or service.

And in many cases, when you’ve positioned your product or service well, your clients already know the value is worth the bump in price, so it wouldn’t really be an issue.

It’s just like some of the tools we use. We still pay more when they increase their prices even if we don’t like it at first : D
You adjust and accept it because the value you’re getting from the tool is still worth the new price they’ve raised it to.

You might lose some clients in the process but most of the time the math fixes the gap.
If you lose 5 clients because of a price increase and 2-3 accept the new price, they can easily cover for those who opted out.

From there onward, any new clients you get will already be coming in at the new price.

 

[Dopious]

Amen to that, good reminder. Never sell yourself cheap.

 

[UnusualSubstance]

Yeah people often charge way too little tbh usually out of fear.

A good rule of thumb is to think:

Take your current service price and 100x it.

So if you sell something for $1000 then think what could you offer your clients if they paid $100k.

Would you offer email support for 100k?

No.

It'd be my direct personal number for example.

You'd basically want to really think about what a 100k client would value massively.

(Which is usually speed above everything else tbh).

Naturally you'd get less sales of your 100k offer but if you send 1000 people and even 3 take it you're 300k heavier which you now now reinvest into staff etc.

Law of large numbers applies .

You can have your normal offer still + expensive offer.

 

[Salamouna]

Thanks for sharing that info, good point!

In services, I like to continue to offer the VIP price to past clients, and this can keep them loyal for a long time.

My recent experience had to do with reselling a physical item online.

And I also find value in having low price in many situations, this is only one tool in the sales toolbox.

This is like last hope, no clients, and cant go lower in price, then raise price substantially and see what happens!

What the max % you increase

 

[Jason Starkey]

What the max % you increase

I just had items that used to sell at $300 and still is selling for that on ebay, cost is around $140. I had lowered price to $150 on marketplace out of desperation to pay a bill, and traffic/messages stopped. I raised price to $250 and interest/messages began again.

I raised price on service recently from $10 on etsy to $40 in offline marketing successfully. But this is apples to oranges comparison and not typical.

Raising price on monthly subscription from $75 to $100 on other service soon, it will not increase my traffic, but profit maybe will increase if numbers stay the same. And new clients will not know of old lower pricing. I am doing because it is too little profit at $75 to scale up.

Another option would be to offer less service at same price, then price stays same but effort goes down and profit goes up, but I like to always go up and move forward to better service

Every business and selling platform is different, but maybe 10%-20% increase would be max to try safely for most business modes? What do you think, have you had a good or bad experience with price changes?

 

[BassTrackerBoats]

Perception is reality.

Low pricing is often perceived by buyers as indicative of low quality.

High pricing is the opposite.

Great thread.

 

[Jason Starkey]

Perception is reality.

This phrase deserves its own thread, I used it in management for years with trainees. Thanks for joining us today. People should think about this when resolving their disputes as well.

When a customer complained they waited for 30min, but it was only 5min, it is reality in their mind usually that it was in fact 30min. So no need to argue or resolve the issue based on our facts, their perception is what really matters even if they are wrong. This is a way to resolving complaints more effectively and masterfully.

 

[Salamouna]

I just had items that used to sell at $300 and still is selling for that on ebay, cost is around $140. I had lowered price to $150 on marketplace out of desperation to pay a bill, and traffic/messages stopped. I raised price to $250 and interest/messages began again.

I raised price on service recently from $10 on etsy to $40 in offline marketing successfully. But this is apples to oranges comparison and not typical.

Raising price on monthly subscription from $75 to $100 on other service soon, it will not increase my traffic, but profit maybe will increase if numbers stay the same. And new clients will not know of old lower pricing. I am doing because it is too little profit at $75 to scale up.

Another option would be to offer less service at same price, then price stays same but effort goes down and profit goes up, but I like to always go up and move forward to better service

Every business and selling platform is different, but maybe 10%-20% increase would be max to try safely for most business modes? What do you think, have you had a good or bad experience with price changes?

I always follow my expenses so I rise price when needed
I don't afraid of losing costumer as I never compete for prices so my clients know why they dealing with me

 

[Jason Starkey]

I always follow my expenses so I rise price when needed
I don't afraid of losing costumer as I never compete for prices so my clients know why they dealing with me

Thanks for sharing your experiences, you always seem like a smart person

 

[davids355]

Perception is reality.

Low pricing is often perceived by buyers as indicative of low quality.

High pricing is the opposite.

Great thread.

A really good customer of mine gave me this exact same advise once. She thought my charges were too low and she told me often people will judge a service by its price and they will feel that if the price is too low, it doesn’t reflect the quality they are looking for. I valued that advise and acted on it, and it worked out very well.

 

[Jason Starkey]

A really good customer of mine gave me this exact same advise once. She thought my charges were too low and she told me often people will judge a service by its price and they will feel that if the price is too low, it doesn’t reflect the quality they are looking for. I valued that advise and acted on it, and it worked out very well.

Exactly, thats why I put "gain new audience" in OP! Sometimes even a customer is never buying in a lower price range period, and only want the best for themselves or their business, so they never even saw us before price increase!

Thanks for sharing your experience to motivate others!

 

[Ben Arthur]

Not the first time this has been talked about, however the reminder is important. I experienced it again very recently.

When sales are so low, raising your price can improve sales, gain new audience, reset algorithms, or improve traffic/engagement, etc.

Of course do not forget that providing some basic service/offer for free initially is a valuable lead generation/sales technique.

Totally agree. Sometimes raising your price can actually boost sales, attract the right audience, and reset algorithms. Offering something small for free still works great to bring people in.

 

[cybersexuals]

Thanks for sharing that info, good point!

In services, I like to continue to offer the VIP price to past clients, and this can keep them loyal for a long time.

My recent experience had to do with reselling a physical item online.

And I also find value in having low price in many situations, this is only one tool in the sales toolbox.

This is like last hope, no clients, and cant go lower in price, then raise price substantially and see what happens!

i like this take, make your current client/s feel VIP/Special, make them feel you're doing them a favor

 

[UnusualSubstance]

Perception is reality.

Low pricing is often perceived by buyers as indicative of low quality.

High pricing is the opposite.

Great thread.

Bass is right.

Would you buy a lambo for £1000?

Of course not.

You'd think what's wrong with it, why is it so cheap etc.



"A study shows that cost doesn't merely interfere with perceived quality, it actually affects real quality."

Source: https://www.gsb.stanford.edu/insights/baba-shiv-how-wines-price-tag-affect-its-taste