10 tips for pricing products and services

10 tips for pricing products and services

Many years have passed since then, as you raised prices? In the current economic conditions small entrepreneurs are worried that due to the forced raising prices they may lose customers. But not necessarily that it would happen. for the annual report of the Public Affairs Pulse in 2012 68% of Americans prefer to deal with large corporations and with small local companies, even if they are for it and we have to pay more.


Here are 10 tips on how to raise prices and not scare off customers.


1. Raise prices gradually. Most likely, your customers either won’t notice, but if notice, you will not mind if you slightly raise the price (say 5%). You can also enter a small fee for additional services, payment for which was included in the total price. For example, if gasoline prices increased the cost of shipping your goods, please select shipping as a separate service.


2. Experiment with higher prices. Test the soil to increase the prices for some kinds of your products and services or increase rates first to a small, not particularly important customers, and then decide to do the same, and the main serious customers.


3. Plan your steps in advance. Your business may be dependent on the materials, the prices of which are unstable. This, for example, can be the petrol for the delivery of goods or food, if this restaurant business. In this case, indicate price limits for those goods and services whose prices need to specify when ordering, or in proportion to the costs we need to cut spending.


4. Create a gradation of products and services. If you don’t like the idea to raise the prices of your core products and services, increase prices for additional products and services that require a higher quality, or more volume.


5. Create packages of products or services. Packages of services or products can persuade customers to buy, if individual products from the package will cost more the total cost in the set. For example, together with the services of a cosmetologist can be offered treatment, and if insurance can offer additional coverage.


6. Notifies customers. Partner companies need to notify their customers of an impending significant price increases. Contact customers 60 days before the price increase, put them before the fact and explain the reasons for this increase. If you have the desire and ability, you can offer customers to sign a contract on the old, not higher, prices.


7. Take into account the seasonality. If your products and services are worth more during a certain season and/or no demand at other times of the year, it is logical to raise the price before the start of the new season. Most likely, your customers will not have questions about the price increase.


8. Use system of discounts, but discounts do care. The abuse of coupons, daily discounts and sales can Deplete your reserves and to attract customers who will buy your products and services just because of low price. Therefore, wisely use the discounts to attract new customers and reward old ones. Teach your sellers the art of prompting customers to buy more, so that customers attracted by the discounts, in the end spent the money that was not going to spend.


9. Educate their customers. The easier customers will take the price increase if they find out what distinguishes your product or service from other. It can be grown local vegetables without pesticides, if we are talking about the restaurant and the unexpected guarantee, if you offer design services web sites – in any case, make sure customers know what your business is featured.


10. Track all the results. Pricing is not a one-time action, but continuous art. In order to monitor changes in the level of sales and to monitor the profitability and the profit, use the software to solve financial problems, such as QuickBooks. Observe how the price increase will affect all these parameters, and adjust the price properly.


10 tips for pricing products and services

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