Should You Raise Your Prices?

There is a danger when you raise your prices. You may lose customers.  It can (and does) happen. But you also need to realize that higher prices only result in the loss of certain customers called Price Shopper.

Customers that complain about price increases are called Price Shoppers. Customers who seek value are called Value Shoppers.  They both exist in all markets. Even you are both. Sometimes you just want the cheap solution, making you a Price Shopper in that situation. And other times you want the best solution, making you a value shopper.

When you raise your prices, your customers will reveal which category they fall in.

Price Shoppers want cheap. Value shoppers want value. The question is, who do you want? If you want customers to see you as cheap (I hope you don’t, but in some case it applies) then you need to reconsider your pricing if people leave. If you want customers who see you as valuable you should be grateful when the Price Shoppers leave to be cheap elsewhere.

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