Price increases are not ideal for customers, but sometimes they are unavoidable. Things like inflation, new features/services, and business practices can all lead to a price increase. So, the question becomes, How do you let your customers know your prices are increasing?
We recommend a direct approach where you either write a letter, call, or email your customers individually. During this time be sure to let your customers know what is going on with your business. Address the reasoning behind the price increase and emphasize the benefits. Being transparent allows you to continue to have a relationship with your customers, and they will be more understanding. Here is an example of an email you can send below:
Dear [Insert Recipient name]
We’re writing to inform you that on [insert date] the price of [insert product/service] will be increasing from [insert current price] to [ insert new price] due to [insert reasons].
Please know that all [contracts/orders] made prior to this date will be honored at the previously agreed upon rate. We do our best to avoid these increases whenever we can, and understand that higher prices are never ideal. We apologize for any inconveniences this may cause. It is important to us that our customers receive the highest quality [service/product] and in order to continue to provide this service we are forced to raise our price(s).
[insert company name] appreciates your continued business, and thanks you for your partnership. If you have any questions or concerns about the increase, please reach out to [insert point of contact] at [insert number or email].
Best,
[Your name]
When it comes to price increases, remember that communication is key. Before making any statements, ensure that there are no other options. Keep things fair, and try to give as much warning in advance as you can. If you need expert help call (210) 348-8008.