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 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.

2. Thank OurCustomer

The first thing we can do when we increase prices is say thankyou to customers – more over the one that we have alreadyguide up to in progress stage. Sincerely express our appreciationfor the risk they took on us, and them we’re being transparentwith them about why we need to raise prices.

The key is to make them understand and still be comfortablewith the risk.

3. Explain whenYou need to

Never use price increased as an attraction plan, this meannothing and even a threat for our leads (potential customer).Imagine if you haven’t take any decision to join or even worseyou haven’t understand the program, then you knew the pricechanged. 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.

4. Add features

- Virtual & physical education andworkshops

- Outgoing Preparation Seminar(OPS)

- Medical assistance, emergencyservices, healthcare, evacuationand repatriation services with ourglobal partner International SOS

- Individual leadership developmentlearning 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 customersfrom this price changes:

Specific added value for

5. Give a lowerpriced option

Good news is they still can have $700 for Global Citizen programand $850 for Global Talent program if they commit to findprojects (to be in IP stage) before 31st of October 2015 ended.

Again, this can’t be the attraction message.

6. Over-Deliverfirst

Be sure you can demonstrate that the value we provide is increasingmore than the price. Firstly, have you understand why? Secondly, doyou remember all the features included?

If you make a small smile for your customer in daily basis, during thistransition period you are required to make the prettiest smile and asmall greeting when you meet them. – You understood this is just asimple example.

7. CommunicateMore value

- CV service- Assessment center- Access to alumni network- Departure package- AIESEC leadership assessment- International SOS

You can communicate this on attraction stage withoutemphasizing this as an additional value out of price changes– as these are actually the benefit in joining our program.

Fresh for customers!

8. Understand thereasons

If you are members or TL– moreover if you are directly involved withour customers, than you need to clearly understand behind thesechanges. If you don’t, you still need to be aware of this, as you might bethe one reason that your friend why your friends know our programs.

If you are EB, now another question for you, how will you communicatethis to the members?

9. Explain butDon’t apologize

As our business develops, our product should be worth more.Briefly explain how the higher price is going to allow you tobetter serve them. Re-read the added features!

Then move on. If you’ve proven your worth, no need toapologize, they won’t walk away :D

10. Inform ourCurrent lead

Give our customers a chance to get the best deal. Make this 2weeks on October to be a momentum that we can process morepeople to IP or even match

Be selective to only inform this to the people who already showtheir interest until the app, not for those who just sign up andleft.

Frequently Asked Questions

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 OptusAustralia) in order to create the correct methodology and check and approve our work whichincluded 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 thatour new prices would impact our previous customer base.

Basically: our customers indicate that prices do not affect their decision to take the programplus 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 ofstudent 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 organizationwe have the ability to operate sustainably over time.

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 talkedabout their price increase.

We have 2 groups of customers1. People who know our price2. People who don't know our

price

1. People who know our priceneed to be informed

2. People who don't know, willnever know the difference.Therefore the price change isonly for conversion.

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 explanationhere. However the question is where does the profit go? In a for-profit, whateverfloats your boat is fine! In a not-for-profit, profits must be held and/or investedback into the organisation and mission.

Without a price increase, AIESEC Australia will suffer massively with rising costs ofeverything 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 abusiness 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 inorder to re-invest into operations, member development & investments.

More Questionsmonica.luo@aiesec.netafifa.urfani@aiesec.net