It's an agonising dilemma. The decision to raise prices and still retain clients is one that every small business owner struggles with. Truthfully, in order to stay relevant, boost revenue and keep profit margins up, raising prices is an absolute must.

Employ meticulous strategic planning when the time comes to bump price points. With simple guidelines, some of the painstaking decision-making is off the table.

The decision to raise prices must come about organically. Does your customer's perception of your quality standard justify a price increase?

If the answer is no, leave it for now - you probably are not ready. If yes, then follow these pointers:

1. Decide how much you will raise prices. Will this be a huge leap up or will you incrementally boost prices over time?
   
   Both have their benefits. Large leaps might meet immediate demands and make the transition swift.
   
   On the other hand, incremental raises allow the client more time to grow accustomed to the changes and accept them.
   
   Consider raising prices on big-ticket items and dropping prices on smaller add-ons for perceived value compensations.
   
   
2. Pick the perfect time. Timing is everything in this matter. When raising prices, you need a time in which resistance will be low. Consider seasonality, growth stage and sales cycles when making the decision.
   
   
3. Improve your communication skills and be prepared to handle the change with extreme caution. Being sensitive to the change and what it will mean to your clients is the most proactive way to manage the announcement.

Have an explanation on hand, one that is clear, concise and also paints your service as worthy of the price hike.

When developing your explanation, consider these tips. Rebrand; create a new logo, something that implies your business has grown to justify a price raise. Perception is the key here. Add on value, while adding on price.

Offer a complimentary service or one-time discount while simultaneously raising prices, again - perceived as value for value.

Consider offering price bundles (extended support or maintenance) or changing up your billing increments (hourly, monthly, retainers, etc.). Any change you make must come with clear explanation to your clients.