Raise your prices to grow your revenue. This sounds like it’s easier said than done, but really it’s almost that simple. You may lose some of your current customers and will definitely lose some potential future customers, but you will be focusing your sales and marketing efforts on bigger fish, which typically provides more return.
Revue, the service I use to send out this newsletter, is really good and has built more and more value over the last couple of years. They just announced a price increase and they did this really elegantly. Here’s the closing paragraph in their announcement email:
We know that nobody likes price hikes and not everybody will agree with us. Since there’s nothing we hate more than unhappy users, we decided that ultimately it’s your choice. So if you disagree with the increase, please reply to this message and let us know why before October 1st and we will keep you on your current plan or whatever increase you do feel is acceptable.
How well done is that? Almost none of their customers will get really upset by the price hike when it’s framed like this, and since their pricing was very low and is still very fair after the increase, very few will request to stay on the old pricing.