Nobody likes to pay more.
Raising prices is one of the most challenging decisions a business can make. From the customer's perspective, it often feels like they're paying more for the same thing, which can lead to frustration or even scepticism.
On the other hand, businesses face real pressures. Rising costs, supply chain challenges, and the need to maintain quality or invest in growth. All while trying to retain loyal customers. Navigating these conflicting priorities takes careful thought and communication.
If handled well, a price increase doesn't have to hurt customer relationships. It could even strengthen it, as long as you're being transparent and not just gouging them for some extra profit.
Instead of just stating the facts like oil prices and inflation. (which seem to be the go-to excuses by some businesses). Try framing the price change as part of a broader story. Customers connect more deeply when they understand the reason behind the change.
For example, if the increase supports sustainable practices or better-quality materials, explain how their continued support contributes to something meaningful, like reducing environmental impact, or how you've hired extra staff to enhance the customer experience. This shifts the focus from a transactional change or profit grabbing to a shared goal that has the customer as the focus. You're doing it for them.
Timing is also important. For smaller, predictable increases, providing 30 days notice is usually enough. For more significant changes, like major product upgrades, aim for 60 to 90 days. This gives customers time to adjust their budgets or explore alternatives without feeling blindsided.
Align announcements with renewal dates when possible, and make sure your messaging reflects empathy and understanding. If you have a subscription service, give them a way out, such as reminding them they can cancel anytime. The last thing you want is for your customers to feel trapped.
Ultimately, a thoughtful, well-timed explanation can turn a difficult conversation into an opportunity to build trust and loyalty. When customers see the value behind the change, they're far more likely to stay with you.