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How to Tuesday: How to Announce a Price increase to your Customers

  Publisher : Bernice   19 April 2022 00:00

Informing loyal customers of a price increase is always dreaded; however keep in mind that no customer expects that the cost of your services remain the same forever, especially after the tough times the international education industry suffered in the past two years. However if your competitors are not increasing theirs it might put you at risk with your customers; that is why how you handle informing your customer of your price increase may ensure they understand the situation and are willing to stick through it.

Here are some tips you can follow to communicate a justified price increase.

Contact them directly

An unexpected increase in price is never received well, minimize the damage by letting your customers know what is happening. If a price increase must occur, reach out to those who you use that particular product or service in advance, if possible address them by name, that personal touch helps the news go down a little less bitter.

Inform them in advance

Always inform your customers well in advance regarding any price increase, to give them the chance to come to terms with it. Some may need to reconsider their budget or look into other options. This would also be an ideal time to suggest they buy or order some more of your products or services before the price increase hits.

Remind them that higher prices mean better quality

Many customers will find the reason behind price increase confusing especially if they are not getting anything extra out of it. Always reiterate with them that the reason behind this price increase is to ensure that they get the best quality service or product; outside factors do increase prices and a price increase is the only thing that can assure the same level of high quality.

Explain the reasoning behind the increase

After assuring your customers that they will still be getting the best quality, follow up with reasons why the price increase is necessary. Reasons may be increased overheads, a new location, better facilities etc, letting your customers know what is going on proves your willingness to be transparent.

Ensure all employees are informed

It is embarrassing when front liners charge the old price for lack of information. Always inform your employees on the price increase, for the sake of transparency make sure that all of them know when, how and why the price increase is happening as they are the ones who will be dealing with your customers on a daily basis and it is always good to show a united front and stay consistent.

Allow customers to reach out with further questions or concerns

Always make sure your customers are well informed; lack of information might be the cause of them moving to one of your competitors. Reassure them that your lines are always open and that if they need any clarifications or reassurance they can always reach out to any one in your company. 

The secret is to not procrastinate when a price increase is on the horizon, customer loyalty is an important factor and if you inform them well ahead you are not only giving them ample time to adjust but you are also letting them know how valuable they are to you.

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