Don’t Fear Raising Prices. Amazon Prime Increase Shows Why Great Value and Service Help When You Raise Prices

Amazon Prime is $79 a year and it’s been that way for several years.

Amazon Prime provides free shipping on zillions of items that sells and it provides free movie streaming on zillions of movies.

Amazon announced today that is raising its prices to $99 – up by $20.

A $20 a year price increase is not a significant increase for Amazon Prime’s target market. That works out to about $1.67 a month.

There are rumbles of folks complaining about the price increase and here’s where the lesson for your small business comes in to play.

(What are your tips and thoughts on small businesses raising prices? Share them in the comments below)

  1. Offer great service that transcends just price.
  2. Offer great value (free shipping, free movies, etc) and you can always justify a fair price.
  3. When you have to raise prices, explain the price increase. In an email to me and other Prime members this morning, Amazon explained it’s price increase.

If you offer value backed by great customer service you don’t have to fear raising prices.

I’d rather have Prime be $20 more per year than for it to shut down or slack in service.


About Ramon Ray

Ramon Ray, Marketing & Technology Evangelist, & Infusionsoft. Full bio at . Check him out on Google Plus, Twitter or Facebook

  • Terry Culkin

    You always will get tension raising a subscription price. It also depends on how you do it. Amazon sent a nice email explaining how it will benefit ‘me’. A couple of years ago Netflix changed there subscription plan without really showing the benefit for the consumer. It’s important to tell your client what benefits the price increase will get them. It’s not about just explaining it, it’s explaining it in the terms of ‘what’s in if for me!’

    • Ramon Ray

      Terry – you are so right!