Price hike hacks: how to manage an increase without losing customers

How you implement a price increase can make all the difference.

For example, when Netflix increased its prices, their customers didn’t like it, but the majority stayed on. Why? They timed it. Netflix were about to release new seasons of House of Cards, Stranger Things, and The Crown, so were able to say ‘for the extra money, you’ll get brand new episodes of your favourite shows’. They added value.

Consider other pricing hike hacks:

- Explain: customers may be more understanding if you tell them upfront why you’re introducing the change. Perhaps there are higher manufacturing or delivery costs. Maybe it’s been a long time since the last adjustment. Communicating clearly in advance gives customers time to prepare, and makes them feel valued. There may even be a rush on sales, to get in before the new pricing!

- Don’t apologise for the increase. Be confident. Show customers why it’s fair.

- Offer a bonus to offset the price rise: People don’t mind paying more if they feel they’re getting value for money. If you announce a price hike, let your customers know at the same time that they will be getting more than they did before. Enhancing the quality of the materials you use, offering new options within your range, providing education, or introducing new packaging can help justify the increase.

Raising your prices doesn’t have to mean losing customers. Often it can lead to a better quality of customer – one with a firmer grip on the value you provide.