These types of conversations are not easy to have with clients. No matter how well you communicate these changes, you should expect some backlash. If, on the other hand, you don’t see anyone complaining about the higher prices, the prices are probably still too low. You must define whether you want to increase revenue or maintain customer satisfaction.
I would recommend that you sync your sales and customer service teams. Both departments must be on the same page when communicating this price change. This will provide customers consistent information as they speak with sales and service representatives.
The best focus your team can generate is to reassure customers that the increase will help maintain product quality. If you’re unsure about starting the conversation, here are some best practices before you start.
1. Contact Them Directly
It isn’t very ethical for a customer to suddenly discover that there has been a price increase on the product. If a price increase occurs, review the list of customers who use that product or service and send a price increase letter notifying them of the change. Address the letters to each customer to personalize the process.
2. Inform Customers Well In Advance
It would help to give your customers enough time to accept the price increase. They may need to reevaluate your budget or consider alternative options, so keep them informed once you know the situation. Also, please encourage them to place one or more product orders before the price increase occurs.
3. Remind Them That Higher Prices Mean Better Quality
The need for a price increase can confuse customers, especially if they have been buying the same product for months or years. It makes it vital that you emphasize the importance of product quality. Products are typically increased in price to match higher operating costs, increases in hiring, or increases in the prices of necessary materials. To ensure the same high-quality level, it is sometimes required to increase the price.
4. Explain The Reasoning Behind The Price Increase
To clarify that you are increasing prices to maintain product quality, you must explain what caused the price increase. For example, as some raw materials become increasingly scarce and expensive, companies that use these materials are forced to increase the prices of products that use them. If you lose that to customers, it will show your willingness to be open.
5. Make Sure The Entire Organization Is Aware Of The Price Increase Before Announcing It To Customers
It would be embarrassing for a frontline worker to accidentally charge a customer the wrong price because his company didn’t notify him of a change. Even if all employees were aware of the situation, everyone should be on the same page regarding the cost difference, the rationale, and the logistics of moving forward. That way, your company has a consistent voice on the matter.
6. Allow Customers To Reach Out With Further Questions Or Concerns
You want to make sure your customers get all the information they need. A lack of knowledge could cause them to turn to a lower-priced competitor. Assure them they can always contact anyone in your company, including senior executives, if they have further questions or concerns about the price increase.
