Raising your prices is never easy, and the timing always sucks. But it’s an inevitable fact in most business models, so the key is learning how to best raise prices and still keep your customer base.
Our economy is giving everyone permission to raise their prices now.
With gas going up, airlines charging for everything and milk prices skyrocketing, Americans are getting used to hearing that prices on just about anything is going up. Which should give you a little bit of a free pass (well, almost).
The idea is not to exploit the opportunity, but to accept that customer spending might go down, and your margins might’ve been tight for a long time, and it’s simply the right time to raise prices, even if your costs haven’t gone up in the last six months.
It will be a while before price increases are as easily accepted as they are now.
Of course, if you can lower prices, that might be even better. It could make you a hero. But whatever you do, don’t allow your prices to just stay the same. Either capitalize on the opportunity to increase margins, or capitalize on increased volume via the marketing advantage of lower prices. But don’t let those prices stay the same.