How to raise prices without losing customers

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Raising prices is a normal part of owning a business. As overhead and material expenses increase, it often means passing along those costs to your customers. But there is a right way and a wrong way to communicate this reality — and how you do it makes all the difference.

Let’s take a look at some of the ways you can raise prices without losing customers.

1. Justify the increase with value 

In a tough economy, people are still willing to pay more — if they feel it’s worth it. That means you need to connect the price increase with improvements or better outcomes. 

Ways to enhance perceived value: 

• Improve your packaging or presentation (better branding, cleaner design, more professional touch) 
• Add extra service time, priority support, or a mini bonus product 
• Share case studies or testimonials to show impact and results 
• Frame it as an upgrade, not just a hike 

Pro tip: Customers are more likely to accept a price increase when they feel they’re getting more, even if it costs you very little to provide.  

2. Communicate transparently 

Your customers are likely feeling squeezed, too. How you frame the message makes all the difference. It might seem scary at first, but remember — people are rooting for you to succeed. If you feel like there will be detractors out there, keep in mind that people are just as likely to root for you!

What to include in your price increase communication: 

• A clear reason ("Our supplier costs have increased by 25%...") 
• Your commitment to quality ("We refuse to cut corners or lower our standards.") 
• A tone of gratitude ("Thank you for being a loyal customer...") 
• Advance notice if possible (30 days is a good standard) 

Pro tip: You can better frame your messaging with phrases like, "To continue delivering the service you expect..." and "We're making these changes thoughtfully, and only where necessary."  

3. Offer tiered or flexible options 

Price-sensitive customers need options. Don’t force everyone into a higher tier. 

Implementation ideas: 

• Create a “lite” version of your product or service 
• Introduce a pay-as-you-go or flexible subscription plan 
• Bundle services into Good / Better / Best packages 
• Add DIY vs. done-for-you levels (especially useful in services/consulting) 

Result: You keep lower-budget customers while allowing others to trade up. 

4. Grandfather loyal customers 

Protect your existing relationships by locking in current rates for a period or giving them special treatment. 

Options: 

• “Current clients can renew at your current rate for 6 months.” 
• “Founding members will continue to enjoy legacy pricing.” 
• “Upgrade now before prices increase on [date].” 

This builds goodwill and incentivizes early renewals or purchases. 

5. Raise prices strategically, not universally 

Instead of increasing everything by 10%, think smarter: 

Where to raise: 

• New customers only (grandfathering others) 
• High-demand services with long waitlists or strong ROI 
• Low-visibility pricing areas (e.g. backend fees, add-ons) 
• Premium offerings where price is not the main objection 

Also consider price anchoring, which is offering a higher-priced option to make the middle-tier look like the best value.  

6. Shift focus from price to outcome 

In a downturn, customers focus on ROI, efficiency, and results. So your marketing and messaging should too. 

Key actions: 

• Replace “features” with results-based benefits in your offer 
• Use phrases like: 
• “Save hours a week…” 
• “Eliminate costly rework…” 
• “Add 5 new clients per month…” 

When the value is clear, the price feels justified.  

7. Overdeliver after raising prices 

Once customers accept the new price, surprise and impress them. This isn’t to say put undue strain on yourself (or your bottom line) but look for opportunities to inspire and delight — it might be easier and less expensive than you’d imagine.

Small touches that increase loyalty: 

• A handwritten thank-you note 
• A small gift or bonus (ebook, extra consultation, check-in call) 
• Sharing their win publicly (tag them in a testimonial) 

This reduces buyer’s remorse and increases referrals, especially valuable in a slow economy.  

Common mistakes to avoid 

There are a few common mistakes that can mean the difference between a clean communication about price increases, and a fumbling explanation that can alienate customers.

Here’s a quick look:

Closing thoughts about raising prices

There you have it. If circumstances outside your control are forcing you to raise prices, don’t panic. With the right strategies in place — like those we just discussed — your business can not only survive, but thrive. 

Here’s to your continued success!