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What are some tips for advising customers of a price increase?

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Quick Answer

Tips for advising customers of a price increase include attributing a clear value to the additional cost and using direct communication that acknowledges the change. When dealing with clients in a business-to-business setting, it may also be necessary to draft a letter explaining the increase and how it affects the customer.

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Full Answer

When your business needs to raise its prices, alert customers about the situation to retain customer loyalty and avoid the appearance of attempting to hide the change. Always use clear language to alert the customers on a channel in which it is possible to make the message easily available, such as a banner on your company's website or through an email newsletter. If your company has any special customers that make up a large portion of sales, it may help to reach out to them directly before the price change to explain the situation.

Provide a reason for the price increase that incorporates a direct value to the customer, including the ability to hire more employees, offer organic foods in a restaurant, or otherwise increase the range of the company's services. The value always needs to be apparent from the start, though it is possible to explain the value through a few sentences if necessary.

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