When was the last time you put your prices up? If it was recently, then you get a gold star and go to the top of the class! If it hasn’t been recently (or if it was never), then read on!
But seriously, raising your prices is something you should do regularly; they need to reflect the value you give your customers with your products or services.
If you’re not raising your prices, then how can you expect to continue to pay all of your bills, give your team pay rises, and continue to make a healthy profit to reinvest in your business and, of course, pay yourself fairly?
But how can I put my prices up as we’re heading towards a recession I hear you ask?
Even more reasons why you need to! With all your costs going up, and your personal expenses too, how can you continue as you are? If you don’t give your team pay rises, sooner or later they will leave for someone who will. Surely you will soon risk having to close your business as you’re no longer able to cover everything. For your customer’s, your team’s, your supplier’s, and, of course, your own sake. You need to raise your prices too.
That doesn’t mean you have to out price yourself. You can raise your prices for your goods and services, and also potentially introduce a new lower price offering to help those that need your goods or services but can’t afford the higher prices.
Also remember, people find money for the things they value and deem important. If you’re providing something they need, something of value at a fair price, then people will still find the money to pay. Yes, some won’t be able to afford your increased prices, but many will find a way.
Check out our blog Undercharging could be the root cause of your biggest business problems to learn more about why undercharging—i.e., not increasing your prices—can harm your business and how to go about charging your worth!