Smart Strategies for Explaining a Price Increase to Clients

Last updated on 
Smart Strategies for Explaining a Price Increase to Clients
Smart Strategies for Explaining a Price Increase to Clients

As both demand and population continue to grow, the cost of living has gone up. Additionally, the prices of products and services are also following a growing trend. The price fixed by the businesses in the initial stages won't be the same when the business grows. For example, consider a kitchen appliance. The rate in 2025 is significantly higher than in 2015. 

This price increase can be due to various reasons, but certainly, the prices for the products are not the same now as they were compared to olden days. A difficult phase that every business owner faces in their business journey is telling their clients or customers about the price increase. Especially when it comes to manage the already existing clients, it looks a bit extra tough.  

If the process of increasing the price is executed, then it must be communicated to the clients first. It can be done by issuing a price increase notice. To handle this situation effectively, some smart strategies can be followed. This blog discusses these strategies. So, continue to read and gain more details about it. 

How to Raise the Price Without Any Resistance?  

The procedure of increasing the price is a crucial one, where the results can be gained in both positive and negative ways. If an attempt to increase the price is going to be made, the initial step to be taken is a clear analysis of the pricing procedures. The following questions must be answered.  

  • Is it essential to increase the price?  
  • If increasing the price is crucial, then how much should it be increased?  
  • What consequences will arise if a price increase is implemented?  

If a perfect answer is obtained for all these questions, then the prices can be increased. A step-by-step process can be followed for increasing the price. They are as follows.  

Step #1: The price-changing decisions must be delivered to the employees of the business. A group of employees will be working under different designations. There may be a production team, sales team, management team, delivery team, marketing team, etc. Each one must be updated about the price change, as each one’s contribution is crucial to it. 

Especially when the clients raise any questions regarding the price change, the employees are the individuals who are responsible for answering their questions and interacting with them. So, informing the employees regarding the new pricing structure is crucial. 

Step #2: After discussing the price variation, as the next step, it must be communicated to the clients. Most importantly, this informing process must be done prior, i.e., two to three months before the price increase. Sharing this information in advance helps clients avoid surprises during the purchase.  

This information-sharing process should be done via some effective methods. They are mentioned below. 

  • Through email services 
  • Communicating with the clients by making phone calls 
  • Posting the message on the social media platforms 
  • Including the price increase message in the banner portion of the website's landing page. 

Step #3: After updating the clients about the price variations, numerous questions will be raised against this alteration from the client’s side. Every question must be answered politely, because all clients are valuable to the business. An FAQ page can be added to the website to answer all the questions of the clients. 

Step #4: While increasing the price, concentrate on attracting new clients to the business. Because they won’t have any idea about your old pricing strategy. 

Tips for Communicating the Price Increase Information: 

1. While informing about the price increase, state it clearly. Don’t mention it as “price adjustment.” State it clearly as “Price increase.” 

2. Communicate the message clearly and concisely, and it should be easily understandable. 

3. Provide a clear justification for the price increase so that the clients can understand the reason clearly. 

Running a business is not an easy process in this digital world. So, make necessary changes in the business process and in pricing strategies, and manage your clients. For better client management, online client management software can be used.