If you’re thinking about raising your prices, you’re not alone. A Bank of America study shows that 79% of small business owners have raised their fees since April 2022. You may need to charge more due to increased production costs or materials costs. Or, maybe your promo business is growing and charging more can help you get the resources you need.   

What’s the best way to bring up price increases with clients? According to Swetha Amaresan, a writer for the HubSpot Service Blog, you should address the topic quickly and authentically so your clients understand the situation.

In this issue of PromoPro Daily, we share her tips on how to inform your clients of a price increase.  

Reach out personally. Don’t just send invoices with higher rates – let clients know in advance. Put yourself in their shoes. Would you rather a company bill you a higher rate without letting you know, or would you prefer someone contact you first? Always contact clients directly.

Give clients plenty of time. They may need to reassess their budget or consider alternative options, Amaresan says, so you should keep them in the loop once you intend to raise prices. You could also encourage them to make one or more product orders before the price increase kicks in.

Remind them of your value. Maybe you’re increasing prices because you’re adding to your team. Let clients know how this benefits them. They’ll be paying more, but they’ll be receiving enhanced service. Amaresan says it’s okay to raise prices to ensure the same level of high quality.

Explain why prices are going up. To make it clear that you’re raising the prices to maintain the quality of your offering, Amaresan says you should explain what caused the price increase. This kind of transparency can go a long way in building trust.

Make sure everyone at your company is on the same page. Everyone in your organization should be aware of the price increase. They should also know the reasoning behind the change and the logistics moving forward, Amaresan says. This lets your company keep a consistent voice on the matter.

Be open to further questions. Your clients may want to reach out to you for more information. Stay open to answering those questions or addressing those concerns. Amaresan recommends reassuring clients that they can contact anyone at your company for further information regarding the price increase.

Most clients understand that costs will rise from time to time. You should still give them a proper heads up, though. Don’t put off the discussion, but don’t stress about how to approach it, either. Let the tips above guide you as you approach what can be a challenging topic.

Compiled by Audrey Sellers
Source: Swetha Amaresan is a writer for the HubSpot Service Blog.