Guides · 6 min read
How to raise your prices without losing your customers
Raise your price when what an item costs you today no longer leaves your usual profit. Work out the new price from today’s cost, raise it early and in small steps rather than one big jump, tell your regular customers before they see it, and keep a smaller or cheaper choice for those who cannot pay more.
Step by step
Check each price against today’s cost
For your ten best-selling items, write what each one costs you today, from your supplier’s latest price, next to what you sell it for. Not what you paid last month: what you will pay to restock. Any item where the gap has shrunk is losing you money on every sale.
Work out the price that keeps your profit
Find what you used to add. If an item cost you ₦8,000 and you sold it at ₦10,000, you added ₦2,000, which is 25% of the cost. Add the same 25% to today’s cost, and that is your new price. Our pricing guide shows how to include your small hidden costs too.
Raise a little, and early
A small rise as soon as your cost changes is easier for customers than waiting months and adding a big amount at once. Two small steps are noticed less than one big jump.
Tell your regular customers first, and say why
Send a short message before they see the new price: "From Monday, the shirt goes from ₦10,000 to ₦12,000, because our supplier’s price went up. Thank you for buying from us." Customers know costs are rising. A surprise at the counter annoys more than the price does.
Keep a smaller or cheaper choice
Offer a smaller size, a smaller measure or a cheaper brand next to the usual one. A customer who cannot pay more still buys from you, instead of going to another seller.
Thank your best customers
Let your most loyal customers buy one more at the old price this week, or tell them a few days early. It costs you little and shows you value them.
Watch your sales for two weeks
Compare how many you sell at the new price with the weeks before. A small drop is normal and the higher profit usually covers it. If sales fall a lot, look at the smaller choice, or at what other sellers near you charge.
An example: a new price for a shirt
Kunle bought shirts at ₦8,000 and sold them at ₦10,000. His supplier now charges ₦9,600. Here is his new price:
- What a shirt costs him today₦9,600
- His usual 25% on top+ ₦2,400
His new price₦12,000
If Kunle kept the old price, he would keep only ₦400 on each shirt, instead of ₦2,000. At ₦12,000, he keeps his 25%, which is ₦2,400 a shirt.
Do this today: Write today’s cost next to the selling price of your five best-selling items. Mark any where the gap has shrunk, and work out its new price.
Questions owners ask
How do I tell customers about a price increase?
Tell your regular customers before they see it, in one short message: the item, the old and new price, the day it changes, and the reason in a few words. Thank them for buying from you.
How much should I raise my price?
Enough to keep your usual profit on today’s cost. If you used to add 25% to what an item cost you, add 25% to what it costs you today.
Will I lose customers if I raise my prices?
Some may buy a little less, but most understand that costs are rising. A small, early rise with a reason, and a cheaper choice beside it, keeps most of them.
Clara can do all of this for you
Clara keeps what you pay your suppliers and what you sell for. Ask "Are my prices too low?" and she shows each price against what it costs you today, from your own records. The new price is always your decision.
Are my prices too low?
ClaraShirts: you sell at ₦10,000, and your last restock cost ₦9,600 each. You keep ₦400 a shirt.