There are various reasons why you may need to let customers know that your prices will be increasing soon. It may be that your costs for doing business have risen. It could also be that you are increasing what you are offering in your products or services so that you will be offering more value. However, before raising prices, it is important to tell customers why the change is being made. Customers want to know that they will get more value if they pay more. Here are some tips for how to explain price increases to customers.

Test Your New Rates

Before announcing price changes to all of your customers, it can be a good idea to test them out on a few customers and see how they react. For example, you can offer higher pricing to new customers to get feedback on it and measure its effect on your sales.

Telling Customers About the Price Increase

People don’t want to be surprised by a price increase they were never warned about. Therefore, telling customers about your increase is essential for maintaining a good relationship with them. Notify customers by messaging them about the increase, explaining the change, when and how it will happen, and how it will benefit them. Also, make sure that the change is fair to all customers. Let them know that they can reach out to you with any questions.

Prepare Your Departments

Make sure that the departments that the price changes are relevant to, such as the sales and customer service departments, are notified about the price changes, when they will begin, and how to answer customer questions about them. Have you team monitor and track how the price changes impact your sales and customer retention.

Avoid Justifying the Price Based on External Causes

Perhaps you want to raise your prices because the costs to your business have gone up. Maybe your equipment, inventory, or rent is more expensive now. However, avoid justifying your price increase to customers based on these reasons. Customers are not concerned about what your business costs are. They are concerned about what they have to gain from your products or services, so focus on how the price increase will benefit them.

Offer Alternatives

Some customers may not be able to afford your price increase. However, if you want to keep them as customers, you can offer them other product or service options that may be affordable to them.

Have the Right Mindset

To successfully increase your prices, you must believe that the increase is justified and that what you are offering is worth the price. Showing this sense of confidence will also make customers confident about your brand, products, and services.

Are you thinking of changing the prices of your products or services? A coach can guide you through the process. Get in touch today!