How to announce a price increase

announce a price increase

It’s never easy to tell your customers you’re raising prices. However, when the prices of everything are constantly on the rise, inflation is nearing the 40-year high, and with the consumer price index accelerating to 8.3% in April, price increases might just be inevitable.

Remember, no one expects you to keep your prices unchanged forever; it’s simply not possible. But when you’re announcing the changes, it’s crucial to do so openly and explain your decision and reasoning.

Here are five crucial steps to informing your customers about price increases.

Inform the entire company of the price increases before the official announcement.

Everyone, especially customer-facing employees, must know of the price increases in advance to avoid miscommunication. They need to know the why, when, and how much to ensure no mistakes in customer communication.

Contact your customers directly.

Ensure no one’s surprised with the price change. There’s nothing worse than finding out the prices changed from the bill. To avoid unwelcome surprises, email every one of your clients and notify them of the changes.

Justify your decision.

Explain to your customers why you’ve decided to change prices: material price increases, supply shortages, disruption in the supply chain, or electricity price spikes are just some of the reasons why you are forced to change your prices.

Make sure they know it’s not just a cash-grab but the only way to guarantee the supreme quality of your product or service.

Communicate price increases ahead of time.

Don’t spring pricing changes on your unsuspecting customers, but rather inform them well before the price changes take place. This way, your customers will have time to get accustomed to the new price, assess their budgets, and prepare for upcoming changes.

Keep your communication lines open.

Many customers may have questions and concerns regarding the price increases. Some will react negatively to your decision. Make sure to handle the communications well and with understanding. Clear up their doubts, and ensure they know they can always reach out to you if they have any questions.

Do you need help drafting your announcement? Let us know, we are here to help.

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