I did, but it wasn't easy. I had tripled subscribership to my website and weekly newsletter in the course of a single year, and it was time increase the rates on advertising space. My clients were all small-business owners operating on very limited marketing budget. While they understood that the rate hike reflected greater reach for their ads, a few chose not to renew their contracts. Thankfully their places were eventually taken by larger, higher-profile clients who wanted to associate themselves with my growing platform. There were a couple lean months in there, but it was worth it over the long term. Ask for what your products and services are worth - others will respect your decision.
I have never had direct experience with this, however, I purchase from local companies who have increased their prices before. At first, I found it frustrating that my favourite Etsy stores and small brands were increasing their prices but I totally understand from a profit perspective.
I suppose if you increase your prices but add something personalised to the item, it can change the customer's perception. As an example: attach a handwritten note to the items or include a discount voucher - anything to make the customer smile! Of course, weigh this in with your profit and see how it works.
@JJJZ you have had your business for a while, have you ever increased your prices? Or are you wanting to? I would love to know!
Rates increases are an unavoidable part of doing business and equally challenging. We have used the inclusion of Making Tax Digital plans in our packages for clients to ensure them about some additions in the services that they receive from us.
It's great to have you on the UK Community!
How do you structure your pricing?
At QuickBooks, we want to make sure you’re in a position to help people and grow your practice. Are you feeling prepared for Making Tax Digital? Is there anything you're worried about? MTD is going to be a huge transition for many but it will open up a lot of opportunities too.
Thank you for commenting! :smileyvery-happy:
We have raised our prices gradually, in line with reasonable customer expectations and therefore customers understand and keep with you. Our reputation undamaged as a realistic increase is always fine.
An example of where it doesn't work is Intuit unfortunately, who have just added 71% to my bill, claiming to add useful feature - none of which I will ever use. In this situation the customer has lost trust in the supplier for such an huge increase, but being tied into QuickBooks there's not much I can do about it without major upheaval. But lets be clear - I really don't trust Intuit now and won't recommend them to any of my customers - who often ask what to use.
So the (im)moral of that story is: treat customers fairly and you keep their trust, but if you can tie your customers in then you can do whatever you like to them and increase your prices at will, but lose their trust.
Hope that's clear enough?