CareerGateway
Pricing: The Number Most Businesses Get Wrong

Module 7 of 7

Raising a price on people who already buy from you

The conversation, the notice, and what actually happens.

This is the module people skip and then need. A business whose prices were set four years ago has been absorbing every input increase since, and the owner usually knows it and is afraid to move, because the fear is that everyone leaves at once. In practice a well-handled increase loses a small number of the most price-sensitive customers, and those are typically the ones who consumed the most attention for the least margin.

What makes it go well is procedural rather than rhetorical. Give notice — a month is usually enough, more for anything a customer budgets for. Tell people directly rather than letting them discover it on an invoice. State the new price once, plainly, without a paragraph of apology; long justifications invite negotiation and read as guilt. Say what stays the same, because the customer's real question is whether they are also about to get less. Honour anything already quoted or committed.

Two refinements. Where you can, raise on new customers first and give existing ones a stated period at the old rate — it is fairer, it tests the new number, and it gives you real data before the harder conversation. And decide in advance what you will do if a specific important customer refuses, because deciding that in the moment is how a considered increase turns into an unplanned discount.

Takeaway

Notice, one plain statement of the new number, no apology, and what stays the same. Decide beforehand what you will do if your largest customer says no.

That is the last module. What you hand in is A priced offer with the arithmetic behind it — the rubric it is marked against is on the course page.