Is It Time To Raise Your Prices? It’s a question that every entrepreneur must ask him or herself during the course of running a business. Whether the cost of goods to manufacture your items has increased or if you offer services, you need to determine whether your time is more valuable than it was durng the start-up phase.

There are many reasons to raise your prices, but it must be done smoothly and you need to let your clients know well in advance of the increase. Look at big companies like Starbucks. It recently raised the price of a cup of coffee by 10-20 cents and the cost of its other drinks even more. It was not a secret. News was shared online and across social media. Customers needed to decide before they got to the drive up window whether that cup of coffee was worth the extra money. Give your clients time to answer that same question.

Don’t justify the increases, but do let your cilents know. Onboarding new clients won’t be an issue because they don’t have a history with you and your pricing. Here are things to keep in mind if you’re raising your prices.

  1. Don’t assume that if you switch to lower cost components to manufacture your products is the way to go. If the quality falls, your clients will let you — and others — know.
  2. Raise prices on new clients, not on current ones. This may not work, but it’s something to consider.
  3. As mentioned, give them advance warning. If your current clients are happy with the goods and services you provide, they may not balk at an increase.

Is it time to raise your prices? How do you decide?

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