Dreading telling loyal customers that you have to raise prices?

Have no fear. Near customers expect that the toll of their dear products won't remain stagnant forever. However, if a competitor's prices are not increasing, this potentially puts you at hazard for client churn. You must handle a price increase apace and authentically to ensure that your customers empathise the situation and are willing to stick through it.

→ Access Now: Price Increase Letter [Free Email Template]

In this mail service, nosotros'll explain what a price increment justification is, then we'll review some best practices yous should consider when making a price increment declaration to your customers.

Cost Increase Justification

This conversation is never easy to accept with customers. After all, who wants to hear that the product your concern relies on is going to cost more?

No matter how well you lot communicate this change, your customer service team should look at to the lowest degree a few negative reactions. If yous aren't seeing anyone complain about college prices, so they're however probably too depression. This leaves information technology up to your discretion whether you want to increase acquirement or maintain customer satisfaction.

If yous're experiencing pushback from your client base, it'south helpful to sync your sales and customer service teams. Both departments should marshal when it comes to how yous communicate this price change. It will provide customers with consistent information equally they speak with both sales reps and service reps.

In general, the best approach your team tin take is assuring customers that the increase will help maintain product quality. Customers who are dependent on your products volition be more than understanding of this reasoning and will want you lot to maintain the high quality that they're accustomed to.

HubSpot's Master Executive Officeholder, Yamini Rangan, reflects on this approach in the quote beneath.

"Some toll optimizations were successful and others weren't. But the ones that we communicated well were always value-driven." - Yamini Rangan, Chief Executive Officer at HubSpot

If you're not certain how to brainstorm the conversation, take a expect at some of the best practices below before yous become started.

Tips for Announcing a Cost Increase to Your Customers

  1. Contact them directly.
  2. Let customers know well in advance.
  3. Remind them that higher prices mean better quality.
  4. Explicate the reasoning behind the price increase.
  5. Ensure the entire system is enlightened of the toll increase before announcing it to customers.
  6. Allow customers to reach out with farther questions or concerns.

1. Contact them directly.

Imagine if your Spotify Premium nib increased from $nine.99 to $14.99 per month without your noesis or consent. You lot would be pretty mad, right?

It's unfair for a client to suddenly observe out there has been a cost increase in their product. If a price increase occurs, go through your list of customers who utilize that product or service, and send a toll increment letter notifying them of the change. If possible, address the messages to each customer to personalize the process.

2. Allow customers know well in advance.

Y'all should provide your customers with plenty of time to come up to terms with the price increase. They may need to re-appraise their budget or consider alternative options, so y'all should keep them in the loop once you're made enlightened of the situation. Additionally, encourage them to make i or more product orders before the price increase kicks in.

3. Remind them that college prices mean better quality.

The necessity for a price increase can be confusing for customers, especially if they've been purchasing the aforementioned production for months or years. It makes it vital that you stress the importance of product quality.

Typically, products increase in price to match higher operating costs, increases in hires, or increases in prices of needed materials. To ensure the same level of high quality, sometimes you have to raise the price.

four. Explain the reasoning behind the cost increase.

To make it clear that you're raising the prices to maintain the quality of the product, you should explain what caused the price increment. For instance, as some raw materials go increasingly deficient and expensive, companies that utilize these materials are forced to increase the prices for products that utilize them. Laying that out to customers will prove your willingness to be transparent.

5. Ensure the unabridged organization is aware of the toll increment earlier announcing it to customers.

It would be embarrassing for a frontline worker to accidentally charge a client the wrong price because their company failed to notify them of a change. Even if all employees were made aware of the situation, they should all be on the same page in terms of the cost divergence, the reasoning, and the logistics moving forwards. That fashion, your company has a consistent voice on the matter.

six. Permit customers to reach out with further questions or concerns.

You desire to be sure your customers receive all the data they require. A lack of information could cause them to churn to a competitor with lower prices. Reassure them that they can always achieve out to anyone in your company — including high-level executives — with any more questions or concerns that come up regarding the price increase.

Accept a price increase coming but still not sure how to say information technology? Cheque out the following price increment alphabetic character templates to help you put information technology in the right words.

Featured Resources: Cost Increment Letter Template

Price Increment Letter Templates

Information technology'due south of import to let your customers know about an upcoming cost increase, but telling them tin can sometimes be tricky to phrase.

If yous're stuck, take a look at the templates below for ideas on carrying the message to customers.

1. General Price Increase

This is an instance of a alphabetic character that lays out a general price increase to customers. It states the exact percent of the cost increase and which products will be experiencing the higher cost. The letter of the alphabet likewise states exactly when the price increase will come into effect and reminds customers of how long they have to order their products at the electric current price.

2. Increase in Cost of Materials

This letter too states the exact percent of the price increase and when it will go into effect. It gives a specific reason for the price increase, providing transparency that many customers will empathise. To make this message more impactful, consider adding the value that the price increase provides to customers.

3. Increase in Operating Costs

Similar the others, this letter states the pct of the price increase and when it will go into issue. The alphabetic character begins by stating a clear reason for the change. It's helpful to lay out the exact products that volition be experiencing a larger cost increment than the rest to avoid any confusion from customers.

Based on these templates, yous can apply the format beneath to create your price increase letter to send to your customers.

Sample Toll Increment Alphabetic character Template

sample price increase letter template

Continue in mind that you'll want to adhere to the tone that you've ready during the customer relationship so far, while being transparent and personal every step of the way. Templates tin aid provide the necessary professional context for price increases and other challenging topics, but exist sure to customize them for maximum impact.

50 Customer Service Email Templates

Click hither to download a gratuitous price increment letter of the alphabet template, available exclusively in HubSpot'south 50 Customer Service E-mail Templates Kit.

How to Write a Price Increase Letter of the alphabet

Delivering notices of a price increase shouldn't bring a sense of dread. With the messaging tips beneath, you lot can make things easier for your team and customers.

one. Exist clear and concise.

Customers shouldn't take to guess or assume what your correspondence ways. Communicate the important information at the beginning of the notice, letting them know explicitly what the new pricing will be and when it will have event. Outline any steps customers need to have earlier the increase happens. Next, explain what their options are and where they can get more data.

two. Exist empathetic.

Depending on your industry, the language you use for written correspondence may demand to be more formal, simply it shouldn't come up beyond as common cold. The Netflix letter above is a great case of being both personable and professional. It makes customers feel that their business is valued and that the visitor sees them as more than just a number. Put yourself in your customer's shoes and recall about how you'd like to receive similar news while drafting the letter. Additionally you'll want to give thanks them for their business organisation before signing off.

iii. Don't apologize.

Companies raise prices all the time and it's a completely normal attribute of doing business. Apologizing will not just make the reader think you're unsure of the conclusion, only also creates unnecessary awkwardness. Your product or service provides excellent value and you should charge appropriately.

4. Ship a follow up.

Email notices can easily end up in spam folders and customers can fault physical letters as junk mail. To combat this, it'south expert to send a follow up notice earlier the increase goes into consequence. It will likewise give a bit of cushion for customers who maybe read your get-go observe, but forgot to follow upward or take activeness to renew. Additionally, it volition decrease the chances they'll feel blindsided past an increase.

With these templates in hand, let'south go through some all-time practices for making your price increase announcement.

Price Increase Letter of the alphabet Examples

You have the tips. You accept the templates. How do they work in real life? If y'all are a paid member of whatsoever subscription service, chances are you take received one or two price increment letters in your email inbox. Amazon Prime number is a popular company you might have witnessed increasing prices over the last few years. They are not the only ones. Let's have a look at examples from Spotify, Disney+, Upwork, Hulu, and Netflix.

1. Spotify

price increase letter example: spotifySpotify sent an electronic mail to its premium Family Plan members about an incoming price increase. The Family unit Plan is a discount plan for upwards to 6 family unit members who live together to bask Spotify Premium accounts. With the change scheduled to happen but four days after the email was sent, one might believe that Spotify blindsided its loyal customers. Diving further into the email, that would evidence fake. While we cannot be certain that they notified their entire organization earlier the annunciation, this price increase email hit on the 5 tips listed above.

One, they contacted their premium Family Programme members directly through email. Two, they let customers know well in advance. Although the change would exist effective four days post-obit the email, Spotify gave their subscribers an extra calendar month with the previous cost. It would give customers time to decide whether to abolish or keep their subscription.

Spotify combines tips 3 and four into the aforementioned statement: "...nosotros are increasing the price of Premium Family Plan so we can continue to bring you lot new content and features that you tin can enjoy…" Their reasoning backside the price increase is to provide customers with better quality.

And lastly, after the trunk of the email, they prompt customers to follow up with any questions with their back up staff.

Short, sweet, and to the bespeak, this price increase email is an ideal example to imitate when you write your own letter.

ii. Disney+

price increase letter example: disney plusLike Spotify, Disney+ appear a price increase to "The Disney Parcel'' subscribers. This bundle includes subscriptions to Disney+, ESPN+, and Hulu. The email informed customers of a price increase to $13.99 (previously $12.99). Disney+ touched on many of the tips listed above, but they also missed a few.

The streaming platform notified customers directly via email. Disney+ also gave three weeks to decide betwixt keeping or canceling a subscription. This cost increase letter closes out with a phone call-to-action for customers to visit their Help Center for questions. While customers had ample fourth dimension to decide or reach out with farther questions, this instance fails to tell them why their subscriptions increased.

Remember, Disney+ launched in November 2019. Compared to Netflix and Hulu, which launched in 1997 and 2008, respectively, the platform is very new. Ane could anticipate that customers were curious why their subscription price was already increasing after a relatively brusque time. While an article from CNN Business explains the reasons behind the increase, Disney+ did not share these reasons with customers in their e-mail announcement.

iii. Upwork

price increase letter example: upworkUpwork, i of the largest freelancing websites, announced a price increase to its Freelancer Plus plan members. This paid plan is a stride-up from its free Freelancer Basic program. It allows freelancers the added benefits of keeping their earnings confidential, customizing their profile URL, keeping their profile agile during breaks, and more.

While this price increase letter is significantly longer than the previous examples, it is nonetheless concise for the level of modify explained. That is not the only thing this alphabetic character does well. After this email, the Freelancer Plus plan members had a month to sit with this information. To explain the reasoning behind the price increase, Upwork includes a section titled, "Why are we making this change?" One can assume that this price will greatly benefit Upwork, merely the email focuses on the benefits to the freelancers.

At the close, this email does not prompt freelancers to reach out with further questions, but it does directly them to learn more than well-nigh the changes happening to their membership. With Upwork being a platform where freelancers spend and make money, this toll increase letter covers enough touchpoints to efficiently introduce customers to the change.

4. Hulu

Hulu price increase letter example

5. Netflix

Netflix Letter

Netflix took a much more than effective approach in their price increase messaging. Similar Hulu, they sent notice well in advance but too took the opportunity to remind customers how their service adds value.

"This update will allow us to deliver even more value for your membership — with stories that lift you up, move you, or just brand your mean solar day a trivial better." It perfectly sums upward why customers should stick around despite the increase.

Overall, Netflix'due south tone is warm and personable while still striking all of the best practices listed above. To further retain customers, the visitor added a list of new releases and top picks in the footer to retain loyal customers — showing them all the great content they'll miss out on if they were to cancel their subscription.

Incoming: Toll Increment Notice

If you have made it this far, you probably have a price increase notice on the horizon. Don't procrastinate. Your customers have signed up for a product or service, and they deserve ample time to brand a determination. Most customers anticipate increased costs in the time to come. Follow the tips listed in this article, and keep moving forward.

Editor's note: This post was originally published in March 2022 and has been updated for comprehensiveness.

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Originally published Jan 5, 2022 7:xv:00 AM, updated Jan 05 2022