Raising Prices While Retaining Customers | Business News Daily

Every company wants loyal customers, but it’s not always easy to retain them, especially when making necessary yet major changes to your brand. For instance, when you’ve decided that to make a profit you need to raise your prices, you probably know your buyers won’t be pleased. You might face backlash from consumers, but you can work to prevent this while still doing what you need to survive as a business. Here’s how.

Grandfathering prices
If you have long-term customers who’ve been loyal from the start, you should make exceptions for them. For instance, if you offer a service costing $35 a month and want to increase it to $45 a month, you should not apply this price jump to existing customers. Allow those who have been consistently paying the lower amount to continue doing so, unless the change is desperately needed. This is called “grandfathering.”

“This lets you grow future revenue without worrying about losing existing customers,” said Dave Lane, CEO of Inventiv. “It also gives you an opportunity to show your existing customers how much you value them. As part of the pricing change, inform your existing customers that they’ll continue enjoying your product or service at the same great price they’ve always had.”

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Raising Prices While Retaining Customers.