The end of the business year is fast approaching and with it comes thoughts of planning for 2022/2023 and maybe reviewing progress to date and budgets.
And, with the price of just about everything continuing to rise (think: fuel, energy and inflation levels) you may have come to the very wise conclusion that it’s time to put up your prices.
Communicating a price rise correctly is vital. When done poorly, the unwelcome news can lead to a loss of business and customer complaints. Two things no company wants.
So, to communicate your prise wise in the best way possible, keep reading to see our list of five factors not to forget.
1. CLARITY FROM THE BEGINNING
There’s no point in hiding it – prices are increasing so be upfront from the start. In preparation, make sure everyone on your team is clued in, and plan a written communication that will be sent to clients roughly two months before prices move.
It’s your decision, but it may be your team who end up in conversation with your customers and they need to know how you’re planning to position things so they can take the same line. Plus, it’s a good message for your customers to see your team confidently representing your business and its decisions.
2. BE CONFIDENT
Make sure that your communications around the price rise are positive and confident, not full of justifications or apologies. Ultimately, it’s a business decision so communicate it like one.
Remind customers how long you’ve been working with them at the current pricing and of the successes that you’ve had together to show your worth. Don’t place external blame.
We can all agree that telling customers about a price rise in a way that keeps them onboard can be a challenge. So, make the increase significant enough that, barring any surprises, you won’t need to go through the process again for a decent period of time. Frequent small increases can make customers worry that all is not well with your business.
3. BUT ALSO, GRACIOUS
Without your customers, you have no business so consider offering some options around the new pricing. Could you provide a slimmed down service at the existing price? Or a small extra to sweeten the higher price the first time they pay it?
Many of your customers may be business people too so they’ll understand that prices go up but some flexibility or a gesture of appreciation is always welcome.
4. Make it PERSONAL
Being confident and clear doesn’t mean you need to be impersonal. So, no ‘Dear Customer’ on your communication, always make sure to use personalisation. And not just when it comes to names. If you’re a beauty therapist perhaps you can reference how many treatments they’ve enjoyed in the past year, or an IT Support expert might remind a client how their website has been operational without any issues for however long has been the case.
5. And remember – DON’T DUCK AND HIDE
Once the communication has gone out, make sure you’re available to field any enquiries. This will demonstrate that you are confident in the value of the service you provide and happy to stand behind your decision.
We hope this guide had given you the tools you need to communicate a price increase confidently. But if you should decide you’d like some professional assistance… then you know where to come.
Here at Semaphore PR we are specialists in communication. We help our clients get noticed by the people and organisations that matter to them and their business. Whether it’s to word price increases, help with staff communication or spread the word about their new service or product. Sound of interest? Get in touch to find out more.