It happens to every tow truck industry – yes, we are talking about the price increase. There has been a change in your industry and as a result, resources needed to produce your goods and services are limited, and as a result, you need to adjust your prices upwards. Now, you have to tell your customers, who have been so loyal to you that you intend to adjust the prices upwards. You are probably worried about how the conversation will turn up. After how customers have dedicated their efforts to your business, is it that what you are repaying them with is only a price increase?
The good news is that most customers expect that the price of their most beloved products will never remain constant forever. Here are some important tips on how to announce price increase to your customers without breaking a sweat.
Make the announcement directly
You need to make the announcement for a price increase to be so direct to your customers. It would be very unfair for a customer to suddenly find out there has been a price increase in their product by getting this news over social media. If a price increase occurs, go through your list of all customers and ensure you use the same product to know the price increase. If possible, ensure you personalize each message you send to your customers.
Let your customers know in advance
You should provide your customer with plenty of time when it comes to issues regarding price increase. Doing so will help them reassess their budget or even consider alternative options available. It Is important to keep them in the loop and make them aware of the situation. You should encourage them to one or more orders of the product before the price increase kicks in.
Remind them of better quality
You need to remind your customers that higher prices mean better quality. It can be very confusing to customers why a price increase would be necessary if they have been purchasing the same product for months or years. This makes it very paramount that you state the importance of product quality. Typically, products increase in price so as to match the higher operating cost, increase in hires, or just an increase in price in materials. To ensure the same level of high quality, sometimes, you might need to raise the price.
Explain the reasoning behind the price increase
Make it clear that you are raising the price to maintain the quality of the product. Else, you should explain what caused the price increase. For example, just as some raw materials become increasingly scarce and quite expensive, companies utilizing these materials are sometimes forces to increase their prices for the products that use them. Additionally, when doing a price increase, ensure the entire organization is aware of the price increase before making the announcement to your customers. You should also allow your customers to reach out with further questions, concerns, and clarifications. Have a strategy in place before you can implement and price increase.