If you’re considering increasing your prices, or have already done so, you may be wondering how best to communicate this change to your customers. You don’t want to lose their business, after all.
There are a few things you should keep in mind when notifying your customers about a price increase. For one, be sure to give them plenty of notice. You should also be clear about why the prices are going up and, if possible, offer alternatives that can help offset the cost.
Finally, remember that price increases are inevitable, and your customers will likely understand. With that in mind, follow the dos and don’ts below to help you notify your customers about a price increase in a way that won’t lose their business.
Why it’s important to increase prices
Price increases are often necessary for businesses. Over time, the costs associated with producing a product or providing a service can rise due to unforeseen circumstances. Whether it’s an increase in the cost of materials or labour, price increases are often inevitable.
As a result, it is important to plan for price increases so your company can maintain financial stability. Additionally, if you notice a need for increased revenue, you may opt to raise the prices of your products or services. This can help you tap into new revenue streams and increase your profits.
Ultimately, you need to ensure that the cost of your products or services accurately reflects the value you offer customers.
When to inform your customers of the price increase
The timing of notifying your customers of an upcoming price increase is important. You don’t want to surprise them too much or too soon. On the other hand, you don’t want to delay the announcement and risk losing customers who are already familiar with your product or service.
The best time to inform your customers of a price increase is when you have a clear plan for how much and when the price increase will occur. You can then give customers ample time to adjust. This will ensure your customers still receive the value they expect from your product or service.
A good rule of thumb is to provide customers with at least a month’s notice for a price increase. This gives them time to adjust their budget, find new ways to save money, and even shop around. However, this period will vary based on your payment terms and service contract.
How to deliver the news
When delivering the news of a price increase, it is important to be honest, upfront, and maintain a genuine relationship with your customers. This can help ensure that the price increase is well-received and doesn’t damage your relationship with customers.
Start by sending an email announcing the upcoming price increase with a detailed explanation. Be sure to include the new price and explain why the increase is happening. You can also offer suggestions on ways they can save money to offset the cost.
For example, if your price increase affects a subscription-based service, you could offer discounts on annual payments or include additional features to make the price increase easier for your customers to swallow.
Two Email Templates to Inform Customers About Price Increase
Price Increase Email template for Stores and Retailers
Dear Valued Customers,
We hope this email finds you well!
This correspondence is to let you know that we will be increasing the prices of certain items in our store. This change is necessary to ensure that we remain a sustainable business while continuing to provide our customers with the quality products they have come to expect.
We deeply value our customers and recognize that this price adjustment may be burdensome for some. While bringing these changes, we want to ensure that our commitment to our customers remains intact. Therefore, we are offering an additional 10% discount on all orders placed before <enter a date>. Keep in mind that terms and conditions apply.
We understand that this adjustment may be difficult, but we hope that you will continue to shop with us in the future. We’re working day and night to bring you the highest quality products at the most favourable prices.
We thank you for being a loyal customer and for your continued support.
Price Increase Email template for B2B clients
We at ABC Company hope you are doing well. We’d like to let you know that as of <date>, we will be making changes to our pricing. The increase is necessary for us to continue offering the same level of service and products. If you have any questions or concerns please do not hesitate to contact us. Thank you for being a loyal customer!
Please find enclosed our revised price list.
ABC Company Team
The dos and don’ts of increasing prices
When increasing prices, there are a few things you should and shouldn’t do. First and foremost, you should be clear, concise, and transparent about the price increase. Explain the reasons for the price increase and how your customers can benefit from the change.
Of course, you should also ensure that the cost of the product or service reflects its value. Customers are often willing to pay more for quality, so don’t be afraid to adjust prices as needed. You should also remember that price increases happen, and your customers will likely understand.
On the flip side, there are certain things you should avoid. Don’t be vague or misleading with your announcement, and don’t surprise customers with sudden price increases. That can create distrust among your customers and damage your relationship with them.
What to do after you’ve increased your prices
Once you’ve increased your prices, there are a few steps you can take to ensure customers remain satisfied. First, be sure to stay in contact with customers and ask for feedback. If customers can see that you genuinely care about their experience and value their opinion, they’re more likely to remain loyal.
You should also continuously offer new products and services to keep customers engaged. This will ensure customers recognize the value of the product or service you offer. Finally, make sure to remind customers of the features and benefits that come with your product or service. This will reinforce its value and help customers feel less of the pinch from the price increase.
Conclusion: Informing your customers about price increase
While a price increase can be a difficult decision, it is sometimes necessary. When informing your customers of a price increase, be sure to provide plenty of notice, explain why the price increase is necessary, and be honest and transparent with them.
Also, remember to offer additional incentives such as discounts or value-added services to help make the transition easier. Following these dos and don’ts can help you successfully increase your prices without sacrificing customer retention.