A phase in the business comes when you are to revise your pricing because of a couple of reasons like increased operation overheads, tax burden, and increased cost of manufacturing of your products. Whatever the reason you think to increase the prices of your products, it is quite challenging to let your customers know about them without making them mad about it.
One of the biggest threats that you are likely to experience is that you can lose your loyal customers. Not all customers may have the capacity to buy your products at revised prices, and as a result, they will likely go to your competitors.
Sometimes you have no other way around increasing your prices, but at the same time, you need to think about your customers.
When they unexpectedly get to know about increased prices, they will likely become mad about it. Telling your customers about increased prices is actually dreading, but you can do it smartly.
Tips to tell your customers about the price increase
Most of the consumers know that the prices are not going to be stagnant forever, but if your competitors are not going up, this can potentially increase customer churn rate.
If you want to increase the prices of your products, you should ensure that you do it authentically. In the below, we share the best practices that you should follow:
• Tell your customers beforehand
If you have decided to increase your prices, make sure that your customers are in the loop. They will seriously get mad when they see increased prices when they place an order. This is why it is recommended to tell them beforehand.
It is actually unfair for customers to find out there has been an increase in the prices of the products. You should inform all of your customers through text messages or emails about your new pricing.
It is recommended to contact them through email because most people do not read text messages. Make sure that you personalize the message to each user.
This polite and subtle move to inform about changes in the price of your products will prevent your customers from being mad about it.
• Let your customers have time to digest it
Many companies decide to revise the prices as the new financial year starts. For instance, if you have decided to change the prices on 1 April, you should inform it at least a month before the new prices come into effect.
You should let your customers have enough time to get to grips with increased prices. If you inform them just a couple of days before April 1, they will actually mind about it. Chances are, many of them leave you and go to your competitors.
It is always suggested that you inform them about your increased prices at least a month before, so they can have enough time to digest the information. They should be upon as soon as you have decided to increase the prices of your products.
• Remind them they will get better quality
You may have your own reasons to increase your prices. Whether it is because of the tax burden or the increasing cost of operations, you need to ensure that you prove better quality to your customers. Note that you cannot straightaway tell your customers that you are increasing prices because your operation cost has increased.
This is why you should remind them that higher prices mean better quality. If you straightaway tell your users that you are about to increase your prices coming into effect next month. You should assure them that the price increase does not just mean an additional burden on their pocket.
Tell your customers that they will also get value in exchange for the price. Make sure that you stress the importance of product quality. Tell your users that you will try your best to provide even higher quality. It is crucial to assure them that no quality will be compromised at all. In fact, customers will get a better buying experience.
• Be logical about telling the reason for increased prices
When you drop an email or text message to your customers about increased prices, you will have to tell them a reason why you are doing so. If you just mention that revised prices will come into effect from so and so date without giving any reasons, your customers will naturally get offended.
It is crucial to inform your users of the reason why you are increasing your prices. Make sure that it is logical. Although you will assure them that no quality will be compromised, at the same time, you need to tell them a reason that they can digest.
For instance, raw materials are becoming expensive due to constantly changing government pricing policy. If you tell the reason for increased prices, your users will feel that you are being transparent to them.
They will likely trust you and will naturally keep buying your products. Some of your customers may go to your competitors, while others will continue to stick to you. There is no doubt that increased prices will have an impact on your customer base and revenues.
You can have some difficulty in meeting your expenses. In case you run out of money, you can take out bad credit loans online with instant decision. However, it is crucial that you realize your repaying capacity at the time of borrowing money.
The bottom line
Telling your customers about increased prices can be daunting, undoubtedly. However, you should ensure that you do it on time. If you have decided about revising the prices of your products, you should immediately inform your customers about it. Let them have enough time to digest information.
If they are caught off guard by increased prices, they will likely leave you for your competitors. Further, never forget to tell them a logical reason to do and that you will not compromise with the quality.
