I am honored and excited to work with my Business Growth Strategy clients. They are dedicated entrepreneurs focused on serving their clients and developing a clear path to a strong growing business.
Together we create processes that work for them and their team. However, sometimes communicating that process to your prospects and customers may feel uncomfortable. Always remember: It’s business, not personal.
Recently working with one business through the Pumpkin Plan process, we identified her Ideal Client. We then made the decision for the company to begin the process of addressing those customers who are not helping us reach the company’s goals, and who are draining her personal energy instead of fueling it.
A “not great” client is often the result of our saying ‘yes’ to everyone at the start of our business because we haven’t refined our model yet. They may be paying low introductory prices and had settled into a routine – but years later, it’s now time to shake things up.
Together, my client and I decided to put a plan in place – offer them an increased rate, which was lower than that offered new customers; or, if they were unwilling to be updated, they could find another company. Face it – if your “not great” customer is draining your energy, having them take their business elsewhere is beneficial to them and a blessing for you.
How To Raise Prices
How does raising prices for old customers work? As an example, if new customers are paying $100 and these initial buyers are still paying the introductory price of $40, it’s time to raise them to $65 – higher than they were but lower than new customers, as a thanks for their loyalty.
For example, instead of saying, “I’m raising my prices, so now you’ll have to pay $65”, I would say, Company Name is making changes to deliver a better experience for our clients. To that end, the cost of your service will be $65 starting on June 1. New customers are paying $100, but we want to thank you for your loyalty, by paying a Preferred Customer price of $65.” They will either thank you or move on – either way, you win.
Why blame it on the company?
- It is an operational decision of the company, following its mission and vision for growth.
- It takes us personally out of the picture so we remove the discomfort of giving bad news because you made a personal decision as the owner to raise the price.
Listen up: You are running a business, so raising your prices is a normal part of life – we don’t still pay $1/gallon at the gas station, right? But – if the particular situation makes you squirm a bit, remember, it’s business, not personal.