Common mistakes when raising prices
Avoid improvising, giving customers too little notice or reacting to every objection.
Decide with context
Reviewing your prices helps keep a business sustainable. Before making a decision, look at costs, time, margin and the level of service you want to provide.
The PriceBreakeven calculator lets you compare scenarios and understand how many customers you could lose without reducing revenue. It is a decision aid based on numbers, not a guarantee.
Communicate clearly
A price increase is easier to accept when customers understand what they receive. Explain when the new price takes effect, keep the message brief and avoid over-apologising.
Protect the customer experience, listen to reasonable questions and measure what happens afterwards. Losing some customers does not necessarily mean earning less revenue.
- Explain what the service includes.
- Keep the message professional.
- Monitor revenue and margin after the change.