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How To Raise Your Prices

Name: How To Raise Your Prices
Uploaded: 2024-09-10T21:00:20+00:00
Duration: 52 s
Channel: Shanli Liu, CPA, CTP
Description: In this segment, the speaker outlines a two‑part approach to raising prices: treat new customers differently from existing, recurring‑service customers…

10 Sept 2024 · 1 min

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In this segment, the speaker outlines a two‑part approach to raising prices: treat new customers differently from existing, recurring‑service customers. For new customers, simply apply the new rate. For existing customers, the speaker advises sending a price‑increase letter that explains the added value, inflationary pressures, and the ethical need to adjust prices. The letter should highlight the benefits the client will receive, reaffirm the provider’s commitment to quality, and introduce a "grandfathering" period that lets loyal customers keep the old price for a set time, easing the transition and rewarding loyalty.

Chapters

So if you do make a pricing change, there's two components to this. One is new customers, the other is old customers. The easiest thing to do is just change the price and just apply it to everyone who's new. But if someone's on some sort of recurring service, it's a little bit trickier. You want to have a price increase letter. You want to talk about all the things that they're going to get as a result of the investment that you're now making into the business, and that it's the only way that you'll be able to stay in business given inflationary pressures, et cetera. Here's the thing, here's the stuff you're going to get. I want to keep my promise to you, which is to keep our thing as good as possible. And only way for me to ethically keep my promise is for us to reflect that in the prices, which are now having to be changed effective this date. But don't worry, I've grandfathered you in to your old price by this time. And that's key. So I'm grandfathering you in until this date. And that way it's not like it's changing tomorrow. It's delaying the pain and giving them a gift right now as a way of honoring the fact that they've been loyal customers to you.