Jerry Bellune August 6, 2013

How do I raise prices without losing customers?
That’s a question our clients frequently ask.
The answer is simple: You don’t.
Great experiences retain your Dream Clients.
You will lose your marginal tire kickers.
Which would you rather do business with?

None of us can afford to ignore inflation.
Our material and labor costs rise.
We must raise rates or lose profit margin.
We live in an inflationary economy.
Even in hard times, prices continue to creep up.
Are you charging the same thing you did last year?
Five or 10 years ago? Bad mistake if you are.
Your cost of doing business has risen.
Your price of goods and services must rise, too.

Won’t that give your competition an advantage?
Lets hope your competition isn’t as smart as you.
If they don’t raise prices, they’re headed for trouble.
Your clients are raising their prices.
Or cutting the size or amount of their products.
Or charging for services they once gave to add value.
Your price increases won’t shock them.
But it takes courage and common sense to do it,

Let me share with you a real world story.
During the recession, we delayed price increases.
But once the recovery began, we had to raise them.
We did not realize that not everyone’s rate rose.
One of our biggest accounts was exempted.
Not by us but by a worried account executive.
She feared a rate increase would lose her account.

We explained the situation to the client.
She understood but asked for a stepped increase.
Her rate went up in two three-month steps.
In six months, she was paying the increased rate.
Today she is doing even more business with us.
Honesty, courage and common sense was all it took.

Don’t be a patsy for worried sales people.
If they can’t give real value, they need to go.
They aren’t helping you or your clients.

Next: Give value at the best possible price.

© 2013 Lexington Publishing Co., Inc.
Jerry Bellune and his family own and operate book, digital, newspaper andniche publishing companies in Lexington. For a complimentary copy of “9Deadly  Advertising Mistakes & How to Avoid Them,” contact him at [email protected]