Why raising your prices isn’t the reason customers leave.
There’s a lot of noise and debate around at present around putting prices up. Should we put them up because our costs have risen (NI, rent, rates etc) and we need to maintain some margin?
But what if we do it and customers walk? We can’t afford to lose revenue at present.
Many business owners I talk to fear that raising their prices will drive customers away. But in reality, when clients walk after a price increase, it’s often rarely about the increase – it’s pretty much always about the value they perceive they’re getting.
More often than not, it’s a sign that your service levels haven’t matched their expectations and they use the price increase as the excuse.
Think about it: if a customer truly values what you offer, they’ll happily pay a premium for it. People don’t generally leave because of a slight price increase; they leave because they don’t see the justification for it.
This happens when communication is lacking, service isn’t as seamless as it could be, or customer experience feels like an afterthought rather than a priority.
Raising prices naturally forces customers to re-evaluate your worth, and if they leave, it’s a sign that they were already questioning the value of your service.
This is actually a good thing.
The clients who walk are often the ones who were never fully aligned with your business in the first place. They were always price-sensitive rather than value-driven. They saw you as a transaction, not as a trusted partner.
You know the ones – always on the phone/ email, never happy, always last minute, it feels like a bind dealing with them.
When you increase your prices, you create space for the right clients – those who appreciate your expertise, respect your work, and are willing to invest in quality. The ones who stay are the ones who recognise the full value of your offering, not just the price tag.
Instead of worrying about those who may leave (you want the PITA ones to leave, surely), focus on delivering an exceptional experience for those who stay.
I am convinced that PITA clients all hang out together. Apart from being time hoovers, they rarely speak highly of your business, never refer you and will never leave a glowing testimonial.
Elevate your service, communicate your value clearly, and watch as your business attracts clients who truly align with what you offer. When that happens, raising your prices won’t be a problem – it’ll be a natural step toward greater success.
If you are not putting your prices up to at least offset your cost increases in the next three months, your profit is reducing and you’re effectively going backwards.
The strategy I have taken with both of my businesses and those who I mentor over the last few months is simple in design but difficult in execution.
Focus on delivering and communicating high service levels for a minimum of three months. Then when you position an increase in price, they have no evidence of poor service to use to negotiate with you and only see the value they are receiving.
Make it easy for them to stay rather than easy for them to leave.
Have you increased or are you thinking of increasing your prices? What is stopping you?
Are you ready to stop dithering and unlock your full potential? Curious about how I can help? Book a complimentary discovery 30 minute call now and let’s explore your goals together.
