Raising prices is a natural thing in business. An entrepreneur sets prices based on up-to-date data on, for example, production costs, employment or tax levels, and these are, after all, variable elements (not to mention inflation). If you have just come to the conclusion that it is high time to raise prices, pay particular attention to your regular customers. How do you inform them of this? Use our tips.
Don’t surprise your customers with an increase
The worst thing you can do in such a situation is to bury your head in the sand and simply invoice your customers with the already new, increased rates without a word of explanation. Don’t count on customers not realising, and even if they do, such an action is extremely inelegant.
Also avoid surprising customers with last-minute increases, i.e. just before invoicing, for example. In many companies, budgets are planned even months in advance. The decision to raise prices was certainly not a spontaneous one, so as soon as you take it, you should contact your regular customers and inform them.
An official announcement with a brief explanation
An e-mail sent to regular customers is sufficient here. However, if you have been working with some companies for a long time and know their representatives well, it does not hurt to inform them of the increase by telephone.
When doing so, it is very important to make a nod to your regular customers and briefly explain the reason for the price increase. Make it a credible argument, such as citing higher production costs or investment in new technology.
Distract customers from higher prices
Most reasonable customers will not have a problem with the fact that you have raised prices, as long as you let them know that they can only gain from it. Contrary to what you may think, this is not that difficult. In the message about the planned increases, focus not so much on the new prices as on the benefits for customers.
For example, if the price increase is related to the fact that you have hired new staff and expanded your machinery, emphasise that this will enable you to complete orders faster and guarantee higher quality – which is what your customers care about most (those who are with you because of low prices will probably leave, but you shouldn’t despair).