Over the past of, we’ve:įor us to continue to invest in making better for you, we need to increase our prices. Explain your reasoning and remind your customers that higher prices mean a higher quality of products and services. Contact your loyal customers directly and send a price increase letter well in advance. Communicate transparently and provide a justified explanation of why the price increase was necessary. The way you approach the price increase announcement can affect how your customers receive the news. How to tell customers about the price increase? Furthermore, small business owners may be faced with the rising costs of raw materials, which affects the spike in overall costs of production. Quite often, an increase in pricing happens due to an increase in product demand. amend your marketing strategy to highlight improvements in product qualityĪ price increase can occur for several reasons.regularly change and increase prices (when necessary and justified).choose the best timing to increase prices.provide a meaningful explanation for the price increase.communicate with your customers transparently.Here are some of the best ways to increase the prices of your product(s) without triggering high customer churn: Not sure where to start on how to evaluate your current pricing, start here. Prove to them that your mission is to continuously deliver a superior product and that the pricing changes are merely a reflection of this. Show them how the improvements of your product or service will make their lives even easier than the previous version of your product or service. Why are they actually unhappy? Ask enough questions to get to the bottom of it and keep coming back to the improved features or the entirely new features. Again, here is where you listen to their grievances. As Jeanne notes, it will be so tempting to cave when one of your largest customers calls to say they’re dissatisfied with your decision to increase prices. The above steps are what it takes for a successful implementation of pricing changes. Just as you adhere to your internal mission of becoming the leader within your industry, you should adhere to your value propositions and your decisions regarding pricing. You’re working to develop and provide a superior product that is unrivaled within your market. You’re not working day in and day out because you don’t love your product or your customers. Step 5 is a battle cry for your business. Steps 2 through 4 are all about communication. Remind them that you will continue to work hard to earn their continued patronage.ĭelivering on value is core to a successful SaaS business. However, your new pricing scheme is a great chance to reconnect with customers on the value of your product and just how much better it is today than a year ago. We all can admit that no one truly likes a change that doesn’t feel justified. Listen to their pain points about the change if they bring them up. Communicate it thoroughly to your customers. Stay committed to your new value proposition. Creating a solid action plan on how to increase prices beforehand can help you stay on track. You’ve enhanced it in order to give customers, both present and future, and an even better customer experience. Don’t give in! You’ve developed a superior version of your product. This is the stage where some people will want to cave and employ discounting or other weak retention tactics. The better prepared you are, the easier it will be to stick to your plan and successfully increase prices. Create a communication plan for how you will introduce the new pricing scheme to customers.
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