Innovation

Weigh In: How Do You Raise Your Prices?

Sooner or later, every company has to raise its rates. We're looking for your best tips for upping the tally without sending clients into sticker shock

Written by Deborah Aarts

There are few issues that confound entrepreneurs more than pricing. That’s because it’s often incredibly difficult to arrive at a rate for your products and/or services that a) customers like and b) leaves you with a sustainable margin (that last part is pretty important).

In a recent interview with PROFIT, Kelowna, B.C.-based pricing expert Andrew Gregson shared how limited most entrepreneurs are in their thinking about pricing. “There’s not just one way to price things,” he said. “There are 50.” Indeed, PROFIT dedicated a cover story to this complex topic in early 2013.

More pricing stories:

This is all very helpful in helping you to set your prices. But what do you do when the time comes to raise them?

It’s something almost every business has to take on at some point, whether due to  inflation, higher input costs or a sheer need to take home more at the end of the day. And it’s something that almost every customer really dislikes—possibly enough to make them ditch you for another vendor (or at least consider doing so).

It’s a tough situation for any business owner, but there are solutions out there—and who better to hear them from than your entrepreneurial peers? And that’s why we’re turning this question over to you. What do you do to raise your prices without alienating your customers? What strategies do you deploy to ensure they continue to feel they get value—even with a higher price tag? How do you determine what types of increases the market will bear? When do you tell a client of a planned increase?

Please share your best ideas and experiences by commenting below. We’ll print some of the best responses in an upcoming issue of PROFIT. Remember, you can comment anonymously, and your email is never visible.

Originally appeared on PROFITguide.com