While rising prices are inevitable in the business world, that doesn’t mean price increase announcements have to be viewed negatively. Here are a few tips to help you break the ice as painlessly as possible for your customers.
- Announce the price increase with plenty of notice (at least 30 days) before raising your pricing. Don’t wait until you’re mailing an invoice to let customers know your pricing has changed.
- Build rapport by sending formal, personalized messages to loyal customers via mail, rather than simply sending mass emails or posting a generic sign at your business notifying customers of a price increase. A one-page business letter, postcard, or self-mailer should suffice.
- Depending on your type of business, consider giving customers the opportunity to order more products at the lower price before the price increase takes effect.
- Explain the price increase. For example, you might write, “Our XYZ expenses have increased an average of ZYX percent in the past year, and we can no longer absorb this cost increase by ourselves.”
- Consider adding a higher-priced option (even if it isn’t a popular seller) in order to keep your best-selling option in the middle price range (rather than the most-expensive choice).
- Bundle your product with extras or premiums that will add perceived value and offset the price increase.
- Offer empathy but remain firm when announcing a price increase. While apologizing may seem courteous, it will also appear is if you don’t believe in the price increase.
- Use your price increase announcement to remind customers why they purchase from you. Highlight product features and benefits, and announce any exciting new product updates or new and improved products at the same time.
- Itemize individual products that are typically sold in a bundle to increase perceived value.
- Consider using psychological pricing to raise prices gradually, such as from $9 to $9.99 instead of jumping to $10.
- Consider breaking out fees formerly included in the price. For example, list shipping separately instead of including it in the total price.
If you’d like help developing a creative postcard or mailer to announce price changes, our creative team is here to help. Give us a call today!