Have you raised your prices this year? Please share your experience in raising prices, and how this has impacted your business either positively or negatively.
From discovering your product is worth more to owning your value by raising prices, here are 10 answers to “Have you raised your prices this year and how has this impacted your business for better or worse?”
- We Discovered Our Product Is Worth More
- First Time I’ve Raised Prices in Two Years
- Price Increase Can Work Under the Right Conditions
- Higher Price, Premium Position
- Leverage 0% Financing Plans
- We’ve Raised Prices… Twice!
- Demand Dictates Prices
- You Must Raise Your Prices In-Line With Inflation
- We Raised Prices and Increased Revenue Nearly 7x
- Owned Our Value by Raising Prices
We Discovered Our Product Is Worth More
Like many businesses, this year we decided to increase the price of our products. We were worried about significant drops in sales and financial problems. This turned out to be quite wrong. Of course, we noted some sales decline at the onset, but not so significant that they hit the company budget. We’re currently back on track, as our sales are growing, and our customer satisfaction remains at the same high-quality level as before. It turned out that we were worth more than we thought, which was a delightful surprise.
First Time I’ve Raised Prices in Two Years
As any business owner knows, the costs of goods and services can fluctuate from year to year. For that reason, it’s always important to review your prices on a regular basis and make adjustments as necessary. This year, I made the decision to raise my prices for the first time in several years.
While I was nervous about how this would impact my business, I’m happy to report that the results have been very positive. My customer base has remained strong, and I’ve actually seen an increase in sales. Overall, I’m quite pleased with how things have turned out. I think it’s important to note that raising prices is not always an easy decision, but it can be a very successful strategy if you do so thoughtfully and carefully.
Price Increase Can Work Under the Right Conditions
I raised my prices during 2022, despite the fact that we were heading into a recession. While many businesses were making cutbacks, my most loyal long-time customers continued to do business with me. I credit this to having built good relationships with them, delivering quality work and continuing to provide high-quality outputs. However, I wasn’t getting as many new customers or leads. I was prepared for this—my rates are a little higher compared to other freelance writers. I was making about the same amount each week, but doing less work. Plus, it gave me a little more free time to work on my business and personal projects.
My price increase worked because I built a strong portfolio of clients, five-star reviews, and plenty of samples to showcase my work. I had everything working for me on my end. But had I not been well established or formed such great client relationships, my price increase may have backfired.
Higher Price, Premium Position
When I entered the market, I set lower rates than the actual value I provided. I kept an eye on our prices and the market’s development. I knew that if I didn’t raise them in due time, clients might think they were getting low-quality service for their money—which no one wants! So now both my value and cost-effectiveness match up with my competitors in this SEO niche field. After the recent price increase, my business was positively affected. In fact, I’ve had more customers stick with me and there haven’t been any objections thus far!
Customers know how much hard work goes into delivering quality results, and it’s only fair for us to receive appropriate compensation for our services, especially as our new prices aren’t set higher than what our services are worth. Hence, having a premium pricing system doesn’t necessarily mean a loss of customers. If you increase the value you provide to these customers—suiting their needs, citing relatable use cases—and set your goals to match their goals, you’ll never have a problem asking for a higher price.
Leverage 0% Financing Plans
With the help of financing, our company can cover the rising costs of material, inflation and shipping fees. With this, we’re also able to offer the best quality of products to our customers without impacting the product. The use of financing for a company isn’t just about establishing a cash flow. It’s about being able to provide better products without having to compromise on quality or shrink your product. We offer our customers several financing solutions from Affirm or SplitIt to help them pay for the increased price over time.
We’ve Raised Prices… Twice!
We’ve raised our prices twice this year for two reasons. The first time we raised our prices was back in January, and that was simply because we were so far under the value of our competition. Most of our products were $20-$50 cheaper, but had the same if not better quality than our competitors. We didn’t want to appear too cheap, so we raised our prices by $5 for all products.
The second time we raised prices was later in the year, and that was due to the inflation that’s gripped all aspects of the economy. With the rising costs of shipping, materials, and other business-related expenses, we had to raise our prices to cover all of the costs. We’ve had zero complaints from customers and in fact, our business is the busiest it’s ever been!
Demand Dictates Prices
We were able to raise our prices this year due to a variety of factors. With the economy embroiled in an inflation storm, every business has had to raise their prices marginally. Moreover, we noticed that because of Covid, our clientele was restricted to those within the more affluent classes. They expect top-notch luxury services, for which we’re able to charge more than our routine services. The pandemic also created awareness for sanitation, which helped our particular business grow.
You Must Raise Your Prices In-Line With Inflation
Yes, we’ve raised our prices this year. Our main reasoning for doing so was to cover the increasing costs of doing business. We’ve seen a rise in the cost of software, outsourcing, and other related expenses, so it was necessary to adjust our prices accordingly. The reaction from our clients has been mixed, however.
Some have been understanding and willing to pay more for the quality of work that we provide. Others have been less than thrilled, but we’ve explained that this is something that’s necessary for us to continue operating as a business. Overall, we believe that the price increase has had a positive impact on our agency. It’s helped us to better cover our costs and focus on improving the quality of our work.
We Raised Prices and Increased Revenue Nearly 7x
Our software product was initially offered for free over a long duration. That is, until July when we raised our prices and made it compulsory to subscribe. Initially, we lost a number of subscribers (around 50%), but the revenue from the rest more than made up for it (we were up by 6.7x). It’s essential to clamp down and raise prices in this market, because doing so can reward you with huge dividends.
Owned Our Value by Raising Prices
Raising our prices has always been a way of showing clients that we believe in the value of what we do. It’s a way of saying that we’re worth their investment. However, during this past year it’s been equally important to consider everyone else’s tightening budget. Ultimately, we decided to raise both our prices as well as the level of services we offered with our wedding photography company to help offset the impacts on our clients.
Our clients were overjoyed that we could help with additional duties and provide them with an even more unforgettable special day and were happy to pay an additional 15% price increase. Of course, it’s important to make sure that you’re not hyper-focused on price. Though at the end of the day, as business owners, our photography team decided we wanted to focus on value by blowing our clients’ minds with the level of service we provided to them, in spite of increased prices.