Customer Communication: How to communicate price increases I saw this quote the other day:

The customer may not always be right, but they are the customer.

This is very true! We need customers for our business to thrive. If we didn’t have customers we wouldn’t have a business. Two things we should know.

1. We must dictate the value of our service or products.
2. Costs for quality services and products go up from time to time.

Of course customers don’t enjoy or appreciate this news and the best way to manage this potentially unwelcomed information news is in the way you communicate the price increase (ie. Delivery, structure, tone and composition). 3 Tips to Communicate Price Increases 1. Be honest and upfront.

• Send an announcement 1-3 months prior to current customers about increases.
• New customers should automatically get the new price.

2. Know your worth.

• Believe in yourself and the quality of your service or product.
• Do your homework and check what others who do what you do or costs of similar products. Not only do these businesses increase their prices, but also remind yourself that your service and quality exceeds that of your competitors and you must (heck you earned it) reflect that in your cost! The masses don’t mind paying for better quality.

3. Remind your customers why they keep coming back.

• Raising Prices for reasons other than financial profit.
• You will have customers who will complain about even the smallest prices increase, but this is the nature of growth and inflation. Let them voice their opinion and have empathy for their concerns. However, other businesses are most like increasing prices as well and if they aren’t, then they are cutting corners on their services or products.
• Remind your customers of why they have been loyal to your company for so long and in order to continue to keep exceeding their expectations a bump in costs is a necessary action – let them know you are doing this for them.

Most of people here in the U.S. already to expect rates of these kind to increase at some point. It’s part of the of process and many conditioned to expect it. When customers are already aware of a process like annual or bi-annual rate increases, one of the better options to choose is simply to be direct and put that important information in the beginning of the email, newsletter, letter, announcement and such (Bovee & Thill, 2010). Further, offering an explanation is a great way to “provide reasons and additional information” (Bovee & Thill, 2010, p. 255). Then you can follow this great information and end on a “positive note” (p. 255). Don’t ever forget only you can dictate what you are worth. Remember when in doubt, put yourself in the customers shoes and you will be able to communicate your way to success and have happy patrons.

Reference Bovee, C. L. & Thill, J. V. (2010). Business Communication Today (10th ed.). Upper Saddle River, NJ: Pearson Prentice Hall