Remember when you were 10 years old and it was almost time for bed?
At the moment it was bed o'clock one of your parents would snatch you up without warning and march you straight to bed, right?
Of course not
Parents aren't silly.
Even when they know that bedtime is at the same hour every night, they still do the little “warning trick”.
They give you sufficient notice that it's going to be bed time soon.
Clients appreciate this notice as well
They may not be ten years old, but even they know that invariably it's going to be “price rise o'clock”. They've seen it coming for years, and as you announce the impending price rise, they nod their heads and continue doing whatever it is they're doing. Yup, just like ten year olds, they completely ignore you.
But then you've got to turn on the pressure a bit.
You've got to let them know that the clock is ticking
And the best way to communicate with existing customers is to make an announcement. Have a clear date and time (when you're raising the price) on the announcement. And a specific amount or percentage as well.
If the product is $25, a $10 increase sounds like nothing especially if it's not a recurring purchase. So instead of dollar values, use a percentage instead e.g. 53% increase. Of course, the odd figure always gets the attention as well. So if you're going to increase something, put in a figure of $11.20 or 53%.
And then take a deep breath and start the roll out
The best way to rollout an increase is over a very short span of time. The rollout looks like this:
Step 1: You announce the price rise well in advance, maybe a month or two in advance.
Step 2: You mention it at least a couple of times during that coming month (or two)
Step 3: It's then time to give specific dates when it's going to increase (e.g. it goes up on 1st April)
Step 4: Have a pressure point: This weekend is the last weekend before it goes up by 53%.
Step 5: Make sure you send out an email on Friday and then on Sunday (if it's the weekend). This will cause a surge on Friday, nothing much on Saturday and then another surge on Sunday.
This sequence is pretty much what any kid goes through anyway
It's time to go to bed. Bed time's coming, brush your teeth. Have you got your pyjamas on, yet? Ok, it's off to bed in three minutes. Switch off that light, and see you tomorrow.
But what if the price rise goes all wrong?
What if you get several clients complaining? What if many unsubscribe? In all the years we've run our business, we've always had people unsubscribe. It's the nature of the game. Some people don't want to pay higher prices. And that's fine. It's their choice. But you can't hang around that old price tag forever. And to be fair, you gave them fair warning.
It's going to be price rise o'clock soon
Let your clients know.
Do the little “warning trick”
And then raise your prices.
You'll wonder why you didn't do it before!
Catherine Jules says
If you are a trusted company, and you have loyal buyers and customers, price increase would not affect your sales. Why? Because if you have a good reputation or record to people, they would still rely on your product eventhough there’s a price inflation. It doesn’t count as long as the consistency and the quality of your product is the same as what they used to avail. Nowadays, its understandable that everything in this world increases. Whether we like it or not, that’s reality. We need to open our minds to possibilities. The only problem is MONEY. It’s easy to spend but it’s hard to find. How sad 🙁