探花精选

Dreading telling loyal customers that you have to raise prices?

Sending a price increase letter can be intimidating. However, it doesn't have to be.

In this post, we'll explain what a price increase justification is, then we'll review some best practices you should consider when making a price increase announcement to your customers, and give you a free to take with you.

Skip to:

• Reasons for Price Increases
• Price Increase Letter Tips
• Price Increase Letter Templates
• Price Increase Examples

Common Reasons for Price Increases

Most customers expect that the cost of their beloved products won't remain stagnant forever. However, if a competitor's prices are not increasing, this potentially puts you at risk for customer churn. You must handle a price increase quickly and authentically to ensure that your customers understand the situation and are willing to stick through it.

Some reasons companies increase prices are:

• Production Costs: Costs to produce and distribute your products play a key role in pricing. If those costs increase, you'll need to raise prices to accommodate the added expense.
• Material Costs: Similarly to production costs, the price of materials can also go up which will affect your bottom line. Any adjustments to upgrade the quality of your product will impact pricing as well.
• Industry Trends: If you're not a first-mover into your industry, chances are you'll need to keep up with competitors to make sure your business stays relevant. Conduct a competitive analysis (if you haven't already) to stay on top of industry standards. If you find deficiencies in your current business model, bringing your company up to speed may result in a price increase.

• Growth: Growth is what most businesses strive for and it can also present an opportunity to increase prices. Should you choose to increase due to growth, it's important to offer existing customers benefits or new services to offset the negative effects of an increase.

Before deciding on any price changes, sync with your sales and customer service teams to make sure everyone is on the same page about whether the increase is justified and how to best communicate this change to customers.

Free Price Letter Increase Template

Access 50 free customer service email templates, including:

• Price Increase Letter Templates
• Customer Apology Email Templates
• Referral Email Templates
• And More!

Get Your Free Templates

Download Free

All fields are required.

You're all set!

Click this link to access this resource at any time.

Price Increase Justification

This conversation is never easy to have with customers. After all, who wants to hear that the product your business relies on is going to cost more?

No matter how well you communicate this change, your customer service team should expect at least a few negative reactions. If you aren't seeing anyone complain about higher prices, then they're still probably too low. This leaves it up to your discretion whether you want to increase revenue or maintain customer satisfaction.

If you're experiencing pushback from your customer base, it's helpful to sync your sales and customer service teams. Both departments should align when it comes to how you communicate this price change. It will provide customers with consistent information as they speak with both sales reps and service reps.

In general, the best approach your team can take is assuring customers that the increase will help maintain product quality. Customers who are dependent on your products will be more understanding of this reasoning and will want you to maintain the high quality that they're accustomed to.