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    Three Rules Of Price Increase

    2012/10/3 15:18:00 2

    Price IncreasesRulesMarketing

    Raising your price may mean losing customers. Example: when Netflix After suddenly raising the price a year ago, angry customers left in droves.


    However, if you use the following way Price increase Then your existing customers will not stay away from you, but will stay behind - in fact, they may even become more loyal. Here is the price rule you should observe.


      1, there is a credible reason.


    Consumers fully understand that there are many reasons why the price of a thing can and should be increased. For example, if your suppliers increase their prices, they know that you will also increase their prices. Similarly, if raising support costs makes your company unprofitable (even if the quality of your product is very good), customers will understand that you will ultimately raise prices for support services.


    Even if "I found that my price is lower than that of my competitors" is a feasible reason, so long as it is honest, it is no problem. The key is to give a reason, rather than "because we want more money" - this is basically the attitude Netflix shows.


       2. Advance notice Price rises may come.


    In your daily communication with customers, explain the situation that your company is facing and prepare for your future price increase.


    This is an era when corporate blogs or customer news lists are very convenient to use. Giving customers timely information and letting them have a sense of participation lowers their chances of being angry when they discover that they have to bear higher prices.


    Netflix has enough time and opportunity to notify the existing customers; there is no reason to announce the price increase suddenly without warning.


       3, give existing customers a discount.


    Let's assume that you need to raise the price by 15%. Do not treat all customers equally. You can raise the price to 20% for new customers -- only 10% for existing customers. Even if the old customers offer a temporary discount on the basis of the new price, let them know that you value their support, and you try to give them the best price.


    If you raise your price in reasonable circumstances and make preparations ahead of time, your existing customers will be grateful for the discount you offer instead of being provoked by the sudden new price.

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