Today’s popular pricing advice: “Decrease your prices and gain share.If your prices are the lowest on the market, you can beat your competitors, build up your customer base, and raise prices later.” This is terrible advice. The strategy leaves you broke. No money for sales or marketing. No money for R&D. No money to go after new customers. You’re stuck. A Better Solution: Raise prices methodically, carefully, regularly. How to Raise Prices Responsibly in 3 Steps 1. Align Prices with Value by Segment Start by splitting up your transactions into small groups, defining them by buying situation and customer. Then define the main value propositions for each transaction type/group. Build prices with the following formula for these transaction types: Price = Cost + $Value Prop 1 + $Value Prop 2 + $Value Prop 3 Build prices with the following formula for these transaction types: Price = Cost + $Value Prop 1 + $Value Prop 2 + $Value Prop 3 Worried your value propositions don’t give you an edge? Consider adding a low-cost value driver to your deals. 2. Give your customers the notice they deserve Don’t just announce a price increase out of the blue. Give your customers plenty of notice first. Make the price change even easier on them by taking it slow. A 1% price increase results in an 11% profit increase on average. If this still feels like too much, go a ½% at a time. 3. Sell on value. Always. During the sales process, listing product and service features won’t get you very far. Instead sell on benefits, on the value customers receive. When breaking the news of a price increase, always put it in terms of added value for the customer. Does your product and/or service save customers time? Sell efficiency. Does it make their processes easier? Sell productivity and fewer headaches. Does it make one segment of customers more money? Sell the economic benefit. Stop Lowering Your Prices to Achieve Success. Raise Them Instead. Automate a huge part of this process by putting your sales and pricing data to work. KiniMetrix helps companies determine the most profitable and successful prices for each transaction. Assess how your value propositions resonate across customer segments using the software. Evaluate how your price increases affect margins.

1. insights from
1
How to Regularly Increase Your Prices &
Set Your Business Up for Sustainable Growth

2. insights from
2
Today’s popular pricing advice:
“Decrease your prices and gain share…
…if your prices are the lowest on the market,
you can beat your competitors…
…build up your customer base…
…and raise prices later.”
How to Regularly Raise Prices and
Spur Sustainable Business Growth

3. insights from
3
This is terrible advice.
How to Regularly Raise Prices and
Spur Sustainable Business Growth

4. insights from
4
The strategy leaves you broke.
No money for sales or marketing.
No money for R&D.
No money to go after new customers.
You’re stuck.
How to Regularly Raise Prices and
Spur Sustainable Business Growth

5. insights from
5
A Better Solution:
Raise prices methodically, carefully, regularly.
How to Regularly Raise Prices and
Spur Sustainable Business Growth

6. insights from
6
How to
Raise Prices Responsibly
in 3 Steps
How to Regularly Raise Prices and
Spur Sustainable Business Growth

7. insights from
7
1. Align Prices with Value by Segment
How to Regularly Raise Prices and
Spur Sustainable Business Growth

8. insights from
8
Start by splitting up your transactions into small
groups, defining them by buying situation and
customer.
Then define the main value propositions for
each transaction type/group.
How to Regularly Raise Prices and
Spur Sustainable Business Growth

9. insights from
9
Build prices with the following formula
for these transaction types:
Price = Cost + $Value Prop 1 + $Value Prop 2 + $Value Prop 3
How to Regularly Raise Prices and
Spur Sustainable Business Growth

10. insights from
1
0
Worried your value propositions
don’t give you an edge?
Consider adding a low-cost
value driver to your deals.
How to Regularly Raise Prices and
Spur Sustainable Business Growth

11. insights from
1
1
2. Give your customers the
notice they deserve
How to Regularly Raise Prices and
Spur Sustainable Business Growth

12. insights from
1
2
Don’t just announce a price
increase out of the blue.
Give your customers plenty of notice first.
How to Regularly Raise Prices and
Spur Sustainable Business Growth

13. insights from
1
3
How to Regularly Raise Prices and
Spur Sustainable Business Growth
Make the price change even easier
on them by taking it slow.
A 1% price increase results in an
11% profit increase on average.
If this still feels like too much, go a ½% at a time.

14. insights from
1
4
3. Sell on value. Always.
How to Regularly Raise Prices and
Spur Sustainable Business Growth

15. insights from
1
5
During the sales process, listing product and
service features won’t get you very far.
Instead sell on benefits,
on the value customers receive.
How to Regularly Raise Prices and
Spur Sustainable Business Growth

16. insights from
1
6
When breaking the news of a price increase, always
put it in terms of added value for the customer.
How to Regularly Raise Prices and
Spur Sustainable Business Growth
1. Does your product and/or service save customers
time? Sell efficiency.
2. Does it make their processes easier? Sell productivity
and fewer headaches.
3. Does it make one segment of customers more
money? Sell the economic benefit.

17. insights from
1
7
Stop Lowering Your Prices to Achieve Success.
Raise Them Instead.
Automate a huge part of this process by
putting your sales and pricing data to work.
How to Regularly Raise Prices and
Spur Sustainable Business Growth

18. insights from
1
8
KiniMetrix helps companies determine the most
profitable and successful prices for each transaction.
Assess how your value propositions resonate across
customer segments using the software.
Evaluate how your price increases affect margins.
Click here to see how KiniMetrix
can do this for you.
How to Regularly Raise Prices and
Spur Sustainable Business Growth