Changing prices

Will I have problems with customers that paid more?

[mattmartin]

I would like to try increasing the price of my $18.95 product to $28.95 to see if it is more profitable, but if it doesn't work out and I have to change it back, do you think I'll have problems with the customers who bought it for $28.95? It is the only product I sell and there is a high chance the customer will come back to the site and see that the price has changed. I have a notice that says prices are subject to change without notice, but I'm still afraid customers that paid more might do a chargeback. Has anyone tried this and had problems?

Thanks, Matt

[limoshawn]

We change prices all the time and only once did we even have someone comment on it. Once in 6 years.

That said, why don't you try raising your prices in smaller increments to find out what your most profitable price is? I think you'll learn more about your customer base that way.

[jsinger]

We have sales frequently and also offer free shipping incentives by email to our customer list. Main issue is what happens when a customer orders on, say, a Monday and we lower the price or give free shipping in an email promotion on Tuesday, often before his Monday order is shipped.

While we'd happily give him the better deal, it almost never happens that we get such a request. And certainly never via a chargeback.

Relax!

[ambellina]

Some of this depends on the character traits of your customers. For example, a large portion of my customers would immediately jump down my throat because they are very prone to be annoyed by small changes in price, whether it is an increase or decrease. They will feel cheated and mistreated no matter what I do. However, another group of my customers would react to a price change with sympathy - "Oh, it's terrible that the manufacturing costs have risen," or "Oh wow, that's so cool that you're getting better pricing!" and then buy it regardless of price changes.

So I say do what you gotta, and if anyone questions you, just respectfully explain why the price has changed. People know (but may not want to admit) that merchants have to make money off of sales.

[ByronM]

I wouldn't worry about it. Sometimes you can even leverage your pricing based upon entry pages/refer links so pricing is highly volatile and any customer that complains you can deal with on an as needed basis.

Pricing can reflect inventory levels, market values, refer value (affiliates, PPC, natural, serp) and whatever else you want.

[Extracold]

Ditto what Jsinger said. We too have done this and have hardly ever had anyone pick up on it. People nowadays are savvy to prices moving, and especially with, say, the budget airlines dynamic pricing on seats filled are kind of used to e-commerce prices moving up & down in response to other factors. When challenged we whack on the white hat and price match - plus a small on-site ex gratia freebie to give em something extra.

[ispy]

Depends upon the price difference. Not many people will go through the trouble for a couple bucks. But others will if more money is at stake.

Many people need to plan out expensive purchases in advance. For these, a good policy is to tell them to fax in the page with old price on it to qualify for the old price if they inquire after prices are raised.

[King_Fisher]

In three years two customers ask for a refund. I started out high and have gradually reduced price till I found my best volume pricing...KF

[sniffer]

even though people expect price increases, they don't like to feel as though they're being ripped off. To avoid this I would do a series of smaller price increases as the other poster suggested. More than 50% increase would be hard to justify should somebody ask...