With inflation running the highest in 40 years at almost 8 percent, your business needs to raise their prices now. If not, you will make less money this year as a result of your own increased costs.

Many small business owners are afraid to raise their prices because they think customers will leave them. They won’t.

Every customer knows that costs are going up so many even expect price increase this year! Let’s give them what they expect!

Here is how to raise your prices so all your customers stay:

  1. Add more value as you raise your prices. Think about what you can add that does not cost you much but has value to the customer. For example, when Hulu raised their prices, they gave me Disney+. When Dropbox raised their prices, they gave me more base storage. Most customers will pay more for more value (or at least won’t fight it).
  2. Let your customers know at least one to two months in advance. No one likes surprises and they don’t want their cost to be higher this month. Allow them a choice and the ability to plan.
  3. Make sure your company knows about the price increase (and why it’s being made). It should not be a surprise to anyone with the rate of inflation.
  4. Don’t make a secret of the increase. If you have less than 50 customers, contact them directly by individual email or a call. Allow them to reach out and ask questions.
  5. Raise on new customers first because they have nothing to compare it to. When this goes well, raise prices on existing customers or those that are getting alot of value out of your product or service.

Due to the price increase, some customer may leave. That’s okay. The one’s that leave did not find enough value in what you are selling and would have left soon anyway.