How do you increase prices without losing customers?

Key quotes:

• "But, it is the amount that makes them feel that the overall decision is “worth it.” The question you need to ask yourself is not: How much should I charge my customers? So, to prevent an exodus (churn) every time you ask your customers for more money, it’s important to single out which experiences make you the most “worth it” alternative and work on increasing the frequency and/or value of those experiences."
• "To find out what makes you “worth it”, you need to first get inside your customers’ brains and understand what goes into the decision to spend money on your product."
• "Money is an easy thing to quantify and it makes sense that we’d always look for the lowest cost/highest benefit way to spend it, right? But since our thought process mixes up all our different decision drivers: money saving; time saving; energy saving; well-being, etc., spending the right amount isn’t the same for everybody, and will change according to what is most “worth it” to each person."

Key quotes:

• "With the Fed’s plan to pump trillions into the economy, the price of money is losing value."
• "If you started a service, created a product, or leased a rental a decade ago, and you still charge the same price, you’re losing 18% of your income compared to the year you started."
• "But if Medium changes the price, the company risks losing thousands of subscribers, maybe even more."
• "Perhaps raising prices is on your mind, but you’re terrified of losing customers or tenants."
• "Maybe I should say the “illusion of having to pay more,” because money is continually losing value."
• "You can raise the price for new customers and keep the same price for already paying subscribers."

Key quotes:

• "But you’ll need to understand why they reject price increases before you can get them to pay whatever you ask."
• "It’s also the reason why a one-size-fits-all approach to pricing fails when you’re selling services."
• "These clients are more likely to say “yes” to your price increase, if you time it right."
• "The vast majority of designers “tell” their clients they’re raising their prices."
• "Clients aren’t forced into something they don’t like, they’re enticed into something they can’t wait to buy."
• "Designer: We’re offering this to clients that upgrade to our concierge service."

Key quotes:

• "But only driving down prices to woo customers will eventually backfire on your business: If price is by far the strongest reason why people buy from you, you should strongly consider alternative, more defensible value propositions."
• "Before he touches that pricing lever, he decides to do some research to determine what his customers really think about Smashing Fruits."
• "Note that when considering competitors to your products, it’s also likely that after browsing options available, the customer may choose to buy nothing."
• "For Smashing Fruits Co., this was already happening in their business: a small group of customers were buying higher tiered products for gifting purposes."
• "In the case of Smashing Fruits Co., they serve a variety of customers: from those just discovering their brand, to long time consumers of their products."
• "If you have products flying off the shelf, it’s a green flag that the value you provide to people exceeds its price."