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JDG vs. inflation, or how to raise prices without feeling like a cartoon villain
"Can it be cheaper?" – if you run a sole proprietorship, you've heard this question a million times. And if you still you haven't raised the prices of your services, then you may still be living in the times when bread cost 2 PLN and a liter of fuel was nothing like the price of a plane ticket.
Entrepreneurs face a difficult choice: raise prices and hear the groans of dissatisfied customers, or leave them as they are and start wondering whether the tap water will actually be enough for dinner? So how? raise prices without feeling like villain number one? Here are some ways to help you get through the process without much pain (or at least with minimal).
Rising inflation makes the costs of running a business an increasing challenge for entrepreneurs
Raises? Better late than too late
Many entrepreneurs delay price increases because they don’t want to lose customers. And then suddenly there’s an electricity bill, tax to pay and… panic.
Rule number one: The raise is it's not a question of "if", but "when".
Costs are rising? Your prices must too. You are not a charity (unless you unknowingly are).
Don't wait for the perfect moment. He will never come.
Raising prices “in installments” hurts less. Instead of one jump of 50%, it is better to raise them twice by 25%. Customers will somehow swallow it.
Customer: "That much?!" You: "That's how much my life costs"
There is no point in kidding ourselves – some customers will always complain about prices. But before you start making excuses and lowering your price, remember:
If a client values your work, they will pay. If they don't, maybe it's not worth the effort?
Don't make excuses for pay rises – McDonald's doesn't write you a letter when it raises the price of fries.
You don't have to lower your price to keep the customer happy. Sometimes it's better to lose those who always look for the "cheapest" option.
Instead of asking “why is it so expensive?”, ask “why was it so cheap for so long?”
How to respond to “Can it be cheaper?”
"No, but I can make it more expensive if you want something extra"
"Price reflects quality - if you're looking for something cheaper, you'll probably find it, but not necessarily with the same effect"
"I don't give discounts, but I can add something extra"
Pro Tip: If someone asks why you are raising prices, you can say that you consulted with the finance department. The fact that as a sole proprietorship your “analyst team” is a solitary debate over morning coffee is a different story.
Inflation affects the prices of goods and services, changing consumers' purchasing power and companies' strategies.
The Psychology of Price Increases: How to Raise Prices So Customers Don't Leave?
If you are increasing your prices but don't want to cause panic among your customers, prepare them for it gradually.
Give them time to get used to the new prices. You can send the information earlier instead of surprising them suddenly.
Add value rather than just a raise.
Instead of "the price increases by 20%" it sounds better:
"Starting next month, I am introducing a new option X and better quality of service"
Price change in two steps:
First, raise prices for new customers, but leave the old rates for existing customers for, say, 2 months.
Only then should prices be unified for everyone.
Pro Tip: If you're afraid customers will leave, consider: Do you want customers who stay just because you're the cheapest?
How to avoid the "Janusz effect" - i.e. customers who ask if "it can be cheaper"?
Every entrepreneur has met a client who is trying bargain for every zloty. Such a client starts the conversation with:
“How much for cash?” – You don't run a pawn shop, so the answer is: "The same."
"If I take two pieces, will it be cheaper?" – “No, but if you take five you'll get free good karma.”
"The competition is cheaper" – “Then buy from the competition.”
If a customer thinks something is too expensive, they can simply… don't buy.
Pro Tip: If a customer says "it's too expensive for me", reply "Okay, I understand!" and don't say anything more. Let him decide what to do.
How to raise prices without feeling like a cartoon villain?
Rules for raising prices without stress:
Don't explain yourself. It's a natural part of business.
Start with gradual increases.
Don't be afraid to lose customers who want something for next to nothing.
If your competition raises prices, you may too.
Don't apologize for wanting to earn a decent living.
And remember: Inflation affects everyone – not just your customers, but also you. So if you're wondering whether to raise prices, the answer is: YES.
How about you? When was the last time you raised your prices? How are your customers reacting? Share in the comments!
Inflation makes saving and investing even more challenging
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