Price increases are an inevitable part of running a business, and membership sites are no exception. Whether it's to keep pace with inflation, meet growing demand, or generate additional revenue for improvements, there will come a time when you'll need to raise your membership fees. But how can you do that without upsetting your customers?
There are numerous things you can do to soften the blow of a rate increase, and having a solid plan in place for how you are going to tackle it is crucial.
Here are a few top tips for raising your prices:
1. Communicate early
Give your members plenty of notice before the price increase takes effect. Clearly explain the reasons behind the change, such as improved services, new features, or rising operational costs. Transparency helps members feel valued and understand the rationale behind the decision.
2. Offer a member discount
Show appreciation for your existing members by offering them a special discount or a more gradual price increase compared to new customers. This can soften the impact of the change and make them feel rewarded for their long-term support.
One effective strategy is to grandfather their current rates, applying the price increase only to new members.
3. Deliver excellent service
Before considering a membership price increase, it's crucial to ensure you're delivering exceptional value. This means offering a high-quality product, top-notch customer service, and undeniable benefits for your members. Gauge the satisfaction of your current members by conducting a survey or opening a discussion in your community. If the feedback shows they're highly satisfied with what you offer, you're likely in a strong position to justify raising your rates.
4. Provide extra value
In order to justify a significant membership rate increase, think about improving your service in some way. People are much more likely to accept a price hike if they’re getting something extra in return. Consider providing a free monthly event, digital download, additional product like an ebook or online workshop course. You could even improve the quality of the materials you provide, by hiring a graphic designer to redo your printed materials, or redoing your video content with a professional editor.
5. Add a lower pricing tier
If your members baulk at paying your increased rate, then it’s a good idea to have a fall-back plan in the form of a lower price tier. Basically, they can pay less, but they’ll get less in return.
6. Introduce discounted annual plans
Another great way to offset a higher monthly membership fee, is to offer an annual rate which is lower. For example, if your monthly membership fee rises to $20, then offer an annual rate of $220. You’re essentially giving them a month for free, but only if they pay the fee in one go. This can be a great tactic for increasing member retention as well.
7. Use it as a promotion opportunity
A price increase can serve as an excellent promotional tool. Once you've set the date, begin marketing the upcoming price change to encourage new members to join before rates go up. Ensure your value proposition is clear and compelling, highlighting any new improvements or added features to your membership site. Be confident in communicating why the increased prices are justified, emphasizing the enhanced value members will receive.
8. Prepare for disappointed customers
No matter how thoughtfully you plan your price increase or how effectively you communicate added value and offer lower-priced alternatives, some customers may still complain or decide to leave. This is a normal part of business. Be prepared to address concerns by clearly explaining the reasons behind the price change and emphasizing the improvements you've made to your content and services. Ensure you have a well-thought-out strategy for handling complaints while maintaining high customer service standards. Keeping communication transparent and supportive will help retain trust, even during the transition.
