In this blog, you’ll understand how to write a price increase letter and will also see a few examples.
Every organization will eventually need to increase pricing for a reason. Price-sensitive clients will undoubtedly become irate when prices are raised. Some may even opt not to repurchase your product or service.
Unfortunately, there is no way to keep customers who won’t pay the price more than your existing one. Yet, there are strategies to lessen the impact on those price-sensitive clients. And prevent them from leaving you in wrath and anger.
Also read: The 7 best email clients for Windows in 2022
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Why do you need to raise the price?
The expense of life fluctuates with time. One dollar is worth ten cents, and so on in a never-ending circle. You might need to look more closely at the figures if you want your company to succeed. It is equal to offering more services for less money if you don’t want to raise your rates.
Additionally, if you invest in yourself through courses, training programs, or going to conferences. You’ll probably keep improving at what you do. If you don’t increase prices, you’re probably selling yourself short because your clients receive more value from you.
Some of the common reasons for the price increases are:
Also read: How to launch memberships on Graphy
Meet the increasing inflation
The cost of your personnel and supplies will inevitably increase over time, just as we all suffer cost-of-living rises. Thus, you must ensure you can sustain a positive ROI after raising your pricing over time.
Different business factors and market analyses are considered when determining your price increase. Still, it’s always a good idea to plan for growing expenses for each component of your product offering.
For example, you are using a variety of software and equipment to create your course. If the software vendor increases the price or any other raw material price is increased. You will need to raise your course price to meet the expected ROI.
Most people have developed a habit of purchasing everything from e-commerce platforms like Amazon. While this is good for customers, the truth is that you, as a supplier, pay the price for convenience.
This is not only about e-commerce. Even if you are in any other domain and using a third-party platform to sell your services. Then, then you pay big in convenience fees, and given the efficiency aspect, that makes sense.
8 tips to follow while writing a price increase letter
Once you decide to impose a price increase and determined the new price structure. It is time to inform your clients and write a price increase letter. This will be one of the most challenging emails you’ll ever send, and you’ll be worried that it could cost your clients.
You must be prepared for at least a few unfavorable responses regardless of how thoroughly you convey price change. If no one seems to be complaining about increasing pricing, the prices are still too low. It is now entirely up to you to decide whether you want to boost sales or keep customers happy.
Here are 8 tips you can follow to write a price increase letter:
Communicate with your team before customers
Ensure that this change is communicated to all your teams. Every team in the company will be affected by your cost increase, whether directly or indirectly.
For example, your marketing and sales staff will need to understand how to explain the new price and sell it to new consumers. Just as your customer care team has to be able to respond to inquiries.
Inform your customers in advance
Giving your clients plenty of time to adjust to the price rise is essential. Write a price increase letter in advance. After that, remind them constantly since they might need to reevaluate their budget or other possibilities.
They could also have more responsibilities, such as revising the annual budget, consulting with their superiors, etc.
A more beneficial action would be to encourage them to make further purchases or get a subscription plan at the current rate before the price increase takes effect.
Get on the point directly
Let’s face it: the only topic of this letter is a price rise. It’s better to be direct and tell them how much their costs will increase, what they will be afterward, and when everything takes effect.
They will read the entire message if they want to learn more, but they don’t want to get in touch with you because they couldn’t understand the mail.
A lengthy email is not enjoyable. Nobody likes interruptions. You are not writing a book and value your clients’ time. Be careful to state what you must do straightforwardly.
Your organization probably held several meetings before making any pronouncements, decisions, or conclusions. Include in the email the justifications for your choice to raise pricing. Write a price increase letter describing the value you will be able to provide with the extra money.
Do you have nothing noteworthy to announce? Not a problem; everything can be made into good news. Because you couldn’t afford to switch to better servers, you had to hike costs. Explain to them how the faster servers Express your service’s intention to “focus the rise in income into new more secured servers will add value in your favor and customer’s life.
If you have a B2C market, growing manufacturing costs may blame a product price increase. At the same time, they might not care about it but describe how the price increase will allow you to avoid lowering quality or utilizing exploitative underpaid labor. They will support you and contribute to the campaign for fair pay and ethical work.
You should never lie about your price increase. Avoid making promises that you won’t keep. Giving your clients an update to state that you have delivered on your commitments is a fantastic idea once you have launched the upgrades, services, or goods you have promised.
Be a human
The worst enemy of an email marketer is disinterest. You are not a robotic email sender. Do not dehumanize your email since you are a real person talking with other people.
By presenting a more human aspect to your company, responding to their inquiries, and finding any method to make an email appear like a one-on-one chat, you may express your gratitude to consumers.
Assure them a higher price implies better quality
Customers may be perplexed by the need for a price rise, particularly if they have been buying the same item for months or years. You must emphasize how important product quality is. Products typically cost more because of greater operational expenses, higher employee salaries, or higher costs for raw materials. Sometimes you have to increase the price to maintain the same excellent quality.
For instance, if you offer an online course and you are planning to increase the price. Then you can inform your audience and followers that you are adding extra content and benefit to your course. This will reflect a higher price. You can give a call to action option by encouraging them to buy the course before the price increases.
If you are looking to create an online course and monetize your skills, then Graphy is the platform for you. More than 30K+ content creators have used Graphy to create online courses. The platform features some of the best tools for group collaboration, live sessions, chat, assignments, and simple monetization.
Segment and personalize
If the price increase has varied effects on various clients, avoid sending a general email that requires your consumers to search through to see what relates to them. Every client is different. Write a price increase letter that talks about different level clients separately. You will have at least two types of customers: free and paid.
Create different price increase letters for different categories of clients by segmenting them. Simply put, each customer category should be approached differently because they are at various phases of the buying process. This will make it simpler for you to convert free users to paying customers.
We advise dividing the customers into three categories: those with free membership plans, those who pay monthly, and those with annual subscriptions. Then, write the copy taking into account each group’s unique characteristics and concerns.
Let the customers connect back with you
It’s crucial to include your availability in your price increase letter in case buyers have any inquiries after hearing this part of the news from you.
Assure them that they can always get in touch with the customer support team if they have any queries about the pricing adjustments.
Otherwise, some customers could go to your rivals if they feel you haven’t provided them with enough information.
Examples of Price Increase Letters
It’s crucial to alert your customers of price increases, but doing so can occasionally be challenging. If you’re having trouble, have a look at the below sample to understand how to write a price increase letter:
General price increase letter
We are happy to hear that [Your product name] has [obtained specific outcomes]. We are delighted that our product is assisting you in achieving your goals since your success is also our success.
To ensure excellent outcomes for clients like you, we’ll be slightly increasing our rates due to [reason], and the price change will be effective from [date]. Please find the updated plans here: link.
If you have any concerns about the price increase or anything else. Please don’t hesitate to get in touch with us anytime via email address or live chat. Our customer support team members will be more than happy to help you.
We sincerely value presence as our customer.
Price increase due to increased cost of materials
This is a notification that the price for our [Product Name] will increase by [Price change value] and go into effect on [Date].
[ Your organization] has experienced steadily rising prices for [Material or other relevant Aspect] since [Date or circumstance], which has had an impact on how much it costs to serve our clients.
The increase supports our commitment to giving you the finest possible services.
Contact [Details] if you have any queries about the price modifications mentioned above.
We appreciate your support.
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