With inflation on the rise, shipping on the rise, and supply demands on an all time high but revenue is the same or maybe you’re not breaking even. And you decided that you have to increase your prices to accommodate for your supply increase but you might be afraid that your customers will get upset at you or go elsewhere because you increased your pricing?
In this article, I’ll give you 5 tips on how to effectively increase your prices without losing your customers.
TIP 1: Email marketing
The best way to inform your customers of upcoming changes with your store is through email. Although, you can also inform customers or potential customers through social media but unless they go into your social media page to see that notification they probably wouldn’t have seen it through the infinite scroll of pictures on their feeds. But through email, your message comes across directly into their inbox and even if they don’t open it, the email heading should indicate upcoming changes to your store. And possibly they will perouse your shop and purchase.
Why email marketing? Well because this is where effective communication comes across and plus you’re ensured that the message was sent and received by the recipient. You’ll be able to get instant feedback on their reaction because your analytics will let you know who has subscribed, unsubscribed, purchased, or visited your website.
You can also include a discount code with the announcement to entice customers to shop. You can also introduce new products, scents, and collections through email marketing. Don’t be afraid to send emails to your customers because if they gave you their email then chances are that they want to receive your email. Since social media is inconsistent and at times Instagram, Facebook, Pinterest, Youtube, LinkedIn, SnapChat, Tik Tok, and etc… site goes down but you can always trust your email list to come through.
Also your social media account can get hacked or you can lose access to your social media by being banned by the platform and you can lose all your connections. But with email marketing you always have a way to contact your customers.
I use Constant Contact which is a very easy email marketing software where you can create marketing campaigns, connect your shopify store, or start a store on their platform. You can also connect your Instagram account to Constant Contact to track your analytics better and create targeted posts based on the product you’re trying to promote.
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TIP 2 Sell out:
So what do I mean by selling out. What I mean is that you should sell out of the scent and vessel and introduce a new vessel or size and change its pricing then reintroduce the old scent with the new price.
Say for example, you have 10 oz clear jars and you made 20 Caribbean Teakwood candles and you’re on your way to ordering more candle jars. No no no don’t do that, what you are going to do is leave that vessel size and scent sell out. And if you have more of the 10 oz sizes in other scents, also slowly let those size jars and scents sell out and do not restock those scents. Also, if you have more of those 10 oz candle jars don’t make any more candles with that size but instead slowly introduce either a new candle jar color or a new candle jar size. The trick is to simultaneously add those new candle jar sizes or new color vessels while your other items are still in stock and increase the price; that way so that as the small size sells out those customers that enjoy that same scent will come back to purchase the bigger size and new vessel color of the same scent. Also make sure to let your customer know that the size will be discontinued or in back order. Then after several months introduce that same jar size at a higher price.
Oh and as a bonus to this tip you can also introduce a new scent at a higher price tag the idea behind this is that the scent is “more expensive” because it's either exotic, one of a kind, or luxurious. You can create that sense of “more expensive” by making your product description reflect the price point of your new scent and the product picture as well. So if your product pictures are all in one background then get this candle scent and change the background and highlight that product in the front page of your website to gain more eyeballs and eventually a sale.
TIP 3 create a bundle with your most popular scents:
Then after you create the bundles remove those scents from being sold individually. The bundle price should always be a few dollars lower than the individual priced candle if you add them together. For example, you sell $20 candles and you want to create a 3 candle bundle. Obviously you’ll want to sell the bundle for $60 but where’s the deal in that. If the combined scents you have in the bundle is not what the customer wants then there’s no need for that customer to purchase that item because the bundle cost is just the same as purchasing an individual item times 3. However, the exception to this rule is if the packaging is ready for gift giving then you can increase the price of the bundle or leave the bundle priced for $60. However, if the bundle is not in a gift giving box but rather in a regular box where the customer has to purchase a gift bag or a gift box and a card then don’t over price the gift set. Make it an offer so that the customer who likes to save like me and do the math like me compares the pricing of the bundle to the pricing of the individual candle and realizes or rather believes that they are getting a deal when in fact if you priced your candles for profit making you the candle maker are the real deal getter.
After months of selling the bundle, you can then add the individual candles again with the new price.
TIP 4 Increase your website or Etsy prices:
If you’re selling on Etsy, open your own website and increase the price or vice versa since your Etsy customers are not on your website purchasing and vice versa.
The only downside to this is if your Etsy customers find your website and see the pricing or vice versa then they’ll feel jipped.
However, this will work if you’re trying to migrate from one platform to the next. Meaning if you want to move your online website to Etsy or your Etsy store to an online website. But if you have an Etsy shop and it’s working for you don’t close your Etsy shop just try selling on your website and slowly raise your Etsy prices but at the sametime increasing your online website prices higher but lower than the one from your Etsy shop so in this way you can entice your current customers to shop from your online store and skip the Etsy middle man and keeping your listing fee.
TIP 5 Offer Free Shipping:
If you’re charging for shipping as an extra charge, include the shipping in your product price and offer free shipping.
This might be a little tricky because you’ll have to add a flat fee rate to all your products because you’ll want to keep your shipping fair to you and to your customers. Since shipping rates vary by your location and that of your customers as well as size, and weight of your products, you don’t want to overcharge or undercharge for adding shipping to your product prices.
Adding the shipping fee to your small items is not a problem but if you sell heavier items then this is where the shipping fee gets tricky because of the weight and almost always you as the business owner will get a bit of a loss because of shipping.
So to Recap, use email to communicate your message, sell out of scents and introduce a new size or a new scent or a new collection, charge more on your etsy shop or your website, and finally offer free shipping. I hope you enjoyed this video 5 tips on how to effectively increase your prices without hopefully losing customers.
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