Increasing Prices Without Decreasing Business

Raising prices can be tricky, but most likely will be a step your small business will need to take one day. If you're afraid of driving away longstanding customers, this Tools and Tips article on NFIB.com offers advice on easing the transition, including:

• Provide an explanation. No customer wants to feel taken advantage of so it's important that longtime customers understand that a price increase is necessary for the viability of the business.


• Raise rates gradually. The last thing you want to do is surprise your customers with an immediate price hike.


• Create customer loyalty rates. If you have some customers that have patronized your business for a long period of time, consider offering them a special rate that's higher than the current rate but lower than the rate new customers pay.