Unravelling the Price Puzzle: Mastering the Art of the Price Increase
By Phil Hobden
As businesses grow and evolve, you know what's bound to happen – price adjustments! It's one of those things that businesses need to do to maintain the quality and ensure that their innovation game is strong.
Often, it’s not about the increase itself (our customers will be expecting increases) but it’s HOW we go about communicating and delivering the message. Gerald Ratner wasn't wrong when he described his own jewellery as subpar BUT the way he delivered the message was far from ideal and had serious consequences.
SO, HERE’S SOME TIPS FOR COMMUNICATING PRICE INCREASES:
Timing is Everything: Before you go ahead with the price hike, give your customers a friendly heads-up. Nobody likes sudden surprises, right? So, a few weeks' notice should do the trick, giving them time to adjust.
Why the Bump? Spill the Beans: No secrets here! Be upfront about why the prices are going up. Whether it's those pesky technology costs, super cool new features, or even expanded services, share the details in a way that will enable them to understand it. Showcase the value they'll get despite the change.
Get Personal, Show Some Love: We know they're special, and so should they! Try addressing your customers individually if you can. Send them personalised emails or messages that scream, "You rock!". That relationship is KEY to helping them understand. This isn't the time to hide away…
Offer a Grace Period: If it's feasible, throw in a grace period. Let them snag their goodies at the current price for a little while longer. It's like a gentle transition hug but it will go a LONG way to softening the blow…
Answer with Lightning Speed: Anticipate their questions and be ready to respond with empathetic responses in no time. Show them you care and are there to listen.
Thank You: Don't forget to say thank you! Express your honest and heartfelt appreciation for their loyalty and support over the years. Gratitude goes a long way and shows that you really care.
Don’t Hide Away: Time to get social! Take it to your platforms and announce the price increase. Engage in lively chats with your customers, and don't be shy to respond pronto. Build that trust and keep everything open and honest. I’d rather people express their frustration to me rather than my prospects and other partners/customers!
The increase is just the start: Once the dust settles, follow up with your customers. Make sure they're happy and gather some feedback. It's like fuel for future improvements and it strengthens that relationship even further!
So, remember, it's all about being open and understanding. Be that transparent, empathetic communicator, and turn that price increase into a golden opportunity to strengthen those customer bonds.
About the Author
Phil Hobden is a Sales Leader, public speaker & podcast host with over 20 years of sales leadership experience who now works for a leading global technology business leading digital change across the accounting industry.
The views and opinions in this article are the author’s and may not reflect those of the business they work for.
Find out more about Phil Hobden on LinkedIn.