How can you raise your prices without losing some of your customers? Consider these two ways to charge more and often get more customers
The scenario is quite common these days. Increasing costs to do business are squeezing your profits to historically low, razor thin margins.
But, you can’t raise your prices because you will lose your customers to the competition (who don’t raise their prices).
It is a game of economic chicken where you feel you lose either way.
You are stuck… or are you?
Are there ways in which you can in fact raise your prices… and not get hammered by the competition?
Two Situations Where You Can (And Should) Raise Your Prices
I want to show you two ways (and situations) where you can not only raise your prices, but you can use it to your advantage in a comparison with your competition.
Comedian Jeff Foxworthy introduces the two ways (two sides of the same coin) in a really funny routine he does.
Recommended for YouWebcast: Sales and Marketing Alignment: 7 Steps To Implement Effective Sales Enablement
Watch the video below to see this brief, hilarious routine. See if you can catch the two angles he uses to justify higher prices.
Two Situations Where You Won’t Lose Customers… And May Pick Some Up
Did you catch the angles Jeff used?
In case you just got caught up in the humor of the routine, here they are.
1. People don’t necessarily want low prices… if the quality of the products or services is put in doubt.
Did you notice how Jeff didn’t have to be talked into choosing the higher priced service? He WANTED it… and didn’t feel comfortable accepting the lower priced option. He actually ridicules it.
Why? It all had to do with perceived quality.
There are certain cases where lowering your price, or being the low price leader, or even being in the lower pricing tier, creates a perception that you are cutting corners or providing inferior products or services.
Do you really want to buy a watch from a guy in the Walmart parking lot who sells them out of his trunk… even if it is a great price?
Here is the point I don’t want you to miss: If you raise your prices so you are not in the bottom tier of product/service offerings, it is easier to be perceived as a high quality offering.
If you have more expertise, or experience, or a better track record of results, you should charge more than those that don’t.
Now, you just need to go out and promote yourself as providing superior quality. If you don’t do this, you will simply be perceived as more expensive. Contact 2nd Mile Marketing at (888) 433-5030, and we can show you how to change your customer’s perception of what you offer… and how to promote that new image.
2. People often fear (subconsciously) the consequences of choosing a lower cost option.
Who wants to end up having to use a seeing eye dog after Lasik surgery? As remote as that possibility is, bad consequences are still a subconscious concern for people.
If your prices are on the lower end, people sometimes wonder why.
If the low price competitors in your industry are leaving a number of disappointed or frustrated customers in their wake, and you in contrast are able to satisfy your customers, that is a point of leverage for your higher prices. It is called “no regrets.”
People will gladly pay the higher price for peace of mind. This is actually one way to get more customers when you raise your prices.
Many companies leverage this to great effect. Read how Allstate and State Farm are doing this in my article, How to Make More Money From Each Customer.
If you would like to read more about this concept, it is actually one of the core concepts presented in our free report, 15 Proven Ways To Grow Your Business Revenue. This 26 page report is full of great ideas and insights that can be immediately applied to your business.
Go ahead and download it today!