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10 Ways Increasing
Price Without
Losing Customer
1. Be Honest
Don’t try to hide it. Explain that we’re increasing the price:
- $950 for Global Citizen program
- $1200 for ...
2. Thank Our
Customer
The first thing we can do when we increase prices is say thank
you to customers – more over the one ...
3. Explain when
You need to
Never use price increased as an attraction plan, this mean
nothing and even a threat for our l...
4. Add features
- Virtual & physical education and
workshops
- Outgoing Preparation Seminar
(OPS)
- Medical assistance, em...
5. Give a lower
priced option
Good news is they still can have $700 for Global Citizen program
and $850 for Global Talent ...
6. Over-Deliver
first
Be sure you can demonstrate that the value we provide is increasing
more than the price. Firstly, ha...
7. Communicate
More value
- CV service
- Assessment center
- Access to alumni network
- Departure package
- AIESEC leaders...
8. Understand the
reasons
If you are members or TL– moreover if you are directly involved with
our customers, than you nee...
9. Explain but
Don’t apologize
As our business develops, our product should be worth more.
Briefly explain how the higher ...
10. Inform our
Current lead
Give our customers a chance to get the best deal. Make this 2
weeks on October to be a momentu...
Frequently Asked
Questions
How can we engage and develop every Young
Person in the world if we increase our prices?
The national office consulted wit...
Can we go around posting on Facebook
that we are increasing the price?
NO.
Here is an example of one of our competitors an...
We are a Not-For-Profit, so,
why are we trying to make more money?
Did you know:
For profit and Not For Profit both must m...
More Questions
monica.luo@aiesec.net
afifa.urfani@aiesec.net
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10 Ways Increasing Price Without Losing Customer

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10 Ways Increasing Price Without Losing Customer

  1. 1. 10 Ways Increasing Price Without Losing Customer
  2. 2. 1. Be Honest Don’t try to hide it. Explain that we’re increasing the price: - $950 for Global Citizen program - $1200 for Global Talent program Explain it on the consideration stage, when the customer wants to get more information about benefits and sacrifice to take the program.
  3. 3. 2. Thank Our Customer The first thing we can do when we increase prices is say thank you to customers – more over the one that we have already guide up to in progress stage. Sincerely express our appreciation for the risk they took on us, and them we’re being transparent with them about why we need to raise prices. The key is to make them understand and still be comfortable with the risk.
  4. 4. 3. Explain when You need to Never use price increased as an attraction plan, this mean nothing and even a threat for our leads (potential customer). Imagine if you haven’t take any decision to join or even worse you haven’t understand the program, then you knew the price changed. What’s the point? Explain this to our customers who are in IP (in progress) stage, that they will have more benefits from our additional features.
  5. 5. 4. Add features - Virtual & physical education and workshops - Outgoing Preparation Seminar (OPS) - Medical assistance, emergency services, healthcare, evacuation and repatriation services with our global partner International SOS - Individual leadership development learning program - Visa assistance - Post-exchange activities - Departure package - Arrival support - Departure support - First day of work support - Online and physical support throughout exchange duration - Insurance support - Accommodation support - AIESEC leadership assessment - CV service - Assessment center - Access to alumni network These are the things that we can promise our customers from this price changes: Specific added value for
  6. 6. 5. Give a lower priced option Good news is they still can have $700 for Global Citizen program and $850 for Global Talent program if they commit to find projects (to be in IP stage) before 31st of October 2015 ended. Again, this can’t be the attraction message.
  7. 7. 6. Over-Deliver first Be sure you can demonstrate that the value we provide is increasing more than the price. Firstly, have you understand why? Secondly, do you remember all the features included? If you make a small smile for your customer in daily basis, during this transition period you are required to make the prettiest smile and a small greeting when you meet them. – You understood this is just a simple example.
  8. 8. 7. Communicate More value - CV service - Assessment center - Access to alumni network - Departure package - AIESEC leadership assessment - International SOS You can communicate this on attraction stage without emphasizing this as an additional value out of price changes – as these are actually the benefit in joining our program. Fresh for customers!
  9. 9. 8. Understand the reasons If you are members or TL– moreover if you are directly involved with our customers, than you need to clearly understand behind these changes. If you don’t, you still need to be aware of this, as you might be the one reason that your friend why your friends know our programs. If you are EB, now another question for you, how will you communicate this to the members?
  10. 10. 9. Explain but Don’t apologize As our business develops, our product should be worth more. Briefly explain how the higher price is going to allow you to better serve them. Re-read the added features! Then move on. If you’ve proven your worth, no need to apologize, they won’t walk away :D
  11. 11. 10. Inform our Current lead Give our customers a chance to get the best deal. Make this 2 weeks on October to be a momentum that we can process more people to IP or even match  Be selective to only inform this to the people who already show their interest until the app, not for those who just sign up and left.
  12. 12. Frequently Asked Questions
  13. 13. How can we engage and develop every Young Person in the world if we increase our prices? The national office consulted with Industry experts on pricing (Energy Australia and Optus Australia) in order to create the correct methodology and check and approve our work which included product matrixes, customer surveys and competitor analysis. In oGCDP we are still 25% cheaper than the cheapest option and in oGIP we are still 44% cheaper than the cheapest option and in our research there was no complaint/indication that our new prices would impact our previous customer base. Basically: our customers indicate that prices do not affect their decision to take the program plus even with the price increase we are still the cheapest and most accessible option. More Basically: a few hundred dollars does not mean that much in the larger scheme of student exchange costs, when we talk about accessibility to underprivileged young Australins, we need to look into Scholarships and other funds for this. Finally: we will engage and develop every young person in the world when a an organization we have the ability to operate sustainably over time.
  14. 14. Can we go around posting on Facebook that we are increasing the price? NO. Here is an example of one of our competitors and how they have subtly talked about their price increase. We have 2 groups of customers 1. People who know our price 2. People who don't know our price 1. People who know our price need to be informed 2. People who don't know, will never know the difference. Therefore the price change is only for conversion.
  15. 15. We are a Not-For-Profit, so, why are we trying to make more money? Did you know: For profit and Not For Profit both must make a profit, Check an official explanation here. However the question is where does the profit go? In a for-profit, whatever floats your boat is fine! In a not-for-profit, profits must be held and/or invested back into the organisation and mission. Without a price increase, AIESEC Australia will suffer massively with rising costs of everything in our organisation (more national board members salaries, insurance/ risk management costs, global AIESEC costs, higher operational support costs) We must make money in order to cover our costs (we are not a society, we are a business therefore we must prepare ourselves financially to be sustainable). Are you doing this so that the National Office can have more money to spend on a jet? I wish, but no. In fact the majority of the profit will be kept by Local Committees in order to re-invest into operations, member development & investments.
  16. 16. More Questions monica.luo@aiesec.net afifa.urfani@aiesec.net

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