Raising prices is a sensitive issue – no one enjoys paying more. But with the economy in an upswing, many companies are contemplating it, making managers rightfully anxious. However, the right messaging tactics can help tame a potential backlash.
Just take a page from Amazon, which hiked up the price of Prime a couple months ago.
- Float a scarier number. Amazon initially hinted it was contemplating a $20 to $40 increase. When it announced “only” a $20 boost, customers sighed with relief.
- Appeal to fairness. Amazon clearly noted it that it had not raised Prime’s price since its inception nine years ago. That’s a long time. And it seems fair enough.
- Hint that there’s more to come. There has been a lot of talk about Amazon adding streaming radio to its Prime package. Additional features can make customers more receptive to a deal.