Hi Reader,

A common question I get in class and with clients is: How do I position a price increase to my customers or clients?

I'm going to share some tips, but here's what I want you to remember:

The secret to a smooth change in pricing or policies isn't about the price or details, but in where you direct people's attention.

When Apple or Google release their newest phone models what you hear about is all the new improvements: the better camera, longer battery life, sleek new design, and so on. We may notice the price increase from the last model but we're focused on how much better the newer model is to the ones we already own.

So, how can we help our customers and clients keep their eyes on the prize of our products and services when it comes to price increases?

Here are some strategies to explore:

1. Pair Price Increases with New Features​
   Instead of announcing a price increase in isolation, pair it with an upgrade, new formulation, or some other type of improvement. Presenting these things together allows you and your audience to focus on the added value rather than the added cost. ​
   ​
2. Break Down Large Numbers into Smaller Ones
   ​Reframe the cost to your consumers to keep the focus on your value for dollar. For instance, if you increase an annual subscription fee, you might talk about it in terms of the rate per month. Or, if you sell products, break down the price into cost per serving or use.​
   ​
3. Be Honest and Reward Loyalty (My favorite, by the way)​
   ​Costs are going up for everyone. There's no shame in letting folks know your costs have increased as well and that you need to raise your prices as a result. Soften the blow, though, by providing both fair warning and incentive to lock in current prices before they go up.

Whatever you do, don't let your fear talk you out of raising your prices.

Remember, customers who only buy from you based on price aren't your target audience, so don't be afraid of losing them to businesses that charge less.

If you need help figuring out your price increase and/or how to position it to your audience, book a session with me. I'd love to help you.

Until next time,

PS - If you missed it, last week's It's a Juggling Act was all about keeping the balls moving.

Your success is our strategy!

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