Raising Prices Without Losing Customers
A price increase feels scary but is often overdue. Here is how to do it gracefully.
Raise prices without losing customers by making one clean, deliberate adjustment rather than creeping changes, and by leading with the value of your work instead of apologizing. Prices should keep pace with rising costs. Expect to lose a few of the most price sensitive buyers, which is a fair trade.
Prices should keep up
Costs rise over time, and prices set years ago quietly stop covering them. A considered price increase is not greed, it is keeping your business sustainable, and it is often long overdue. Related: Hidden Costs That Eat Maker Margins
Keep reading: Why Your Handmade Sale Might Be Losing Money, Pricing Handmade Products With Confidence, Hidden Costs That Eat Maker Margins. See how MakerLedgr helps you per-order shipping and profit calculator for handmade sellers.
Lead with value
Customers accept higher prices when the value is clear. Rather than apologizing, remind people, through your presentation and story, of the craft and quality behind the work. Confidence in the value makes the price feel fair. Related: Pricing Handmade Products With Confidence
Change prices cleanly
A clear, one time adjustment is easier to accept than frequent small creep. Setting a new price and standing behind it reads as intentional, while constant tweaking reads as uncertainty.
Accept some churn
A price increase may lose the most price sensitive customers, and that is usually fine. The customers who value your work stay, and you earn more per sale, which is a healthier business than serving everyone for too little. Related: How do you price a custom order request without guessing at the hours?
- Prices must keep up with rising costs
- Lead with value rather than apology
- Make a clean, one time adjustment
- Accept losing the most price sensitive buyers
Julien Jimenez
Julien Jimenez is an independent software builder based in Paris. He designs, ships, and operates focused SaaS products for small businesses and independent professionals. Read the full author page.
Frequently asked questions
Should I announce a price increase in advance?
A brief, confident heads up can work and even prompt a few last orders, but avoid a long drawn out apology. Frame it around continued quality rather than defensiveness.
What if some customers leave after I raise prices?
Some churn among the most price sensitive buyers is normal and usually worth it. A sustainable price with slightly fewer customers often beats a busy shop that barely breaks even.
Know the real profit on every handmade order
Per-order shipping and profit calculator for handmade sellers. MakerLedgr is built to help you put this into practice.
See my marginsMore from the MakerLedgr blog
Why Your Handmade Sale Might Be Losing Money
Pricing Handmade Products With Confidence
Hidden Costs That Eat Maker Margins
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