You can’t keep doing more for less so you’ve decided to raise your prices. Not only that, but you have figured out why and when you’ll raise your prices as well as what they will be, now all that is left to do is to tell your clients. Easier said than done we know, but starting these conversations will positively impact your cash flow! Here is how to write a letter to clients announcing a price increase.
There is no one-size-fits-all solution
We’re going to talk about how to write a letter to clients announcing a price increase! Remember that there is no master price increase template that can be sent to every client. There’s no quick and easy fix that results in a fee increase for you and happy clients. Put simply, you can’t send out a generic message to help you avoid the fee increase conversations.
We wish there was but c’est la vie!
The most important point to remember is that you need to make your price increase letter as personal as possible. Address the client and their individual financial needs first, then they will be much more willing to listen and be understanding about the change.
6 steps to writing a perfect price increase letter to clients
Crafting a letter in just the right way can make a world of difference when it comes to your client deciding to stay with you and accepting the new price. So where do you start?
First, it’s worth downloading our price increase letter template.
Then, here is how to write the perfect price increase letter (in 6 steps):
1. Grab attention quickly
The first paragraph should be attention-grabbing and outline that things are changing and how it will benefit the client. It can be tempting to add fluff and preamble but don’t. This letter is about a fee increase and the quicker you can get to the point, the better.
The intent is to announce and explain the change, not to appease clients, so be direct. Avoid tiptoeing around the subject or using hesitant language as this will make the client feel like they can negotiate.
2. Quickly establish your credibility
Next, you should mention an example of how you have added value or the best results that you have achieved together. If you can’t do this, talk about the value you have brought to a whole range of clients or use a testimonial.
The aim here is to highlight the value that you provide through your service so that you can justify raising your prices. It’s also a great way of personalising the letter, especially if you have an example of some results you’ve achieved for them.
To establish your credibility, just mention an example in your letter. Avoid essay-ing and stay focused on communicating this one message.
3. Set yourself apart
It can be confusing to your clients why a price increase is necessary, especially if they’ve been purchasing the same service from you for months or years. This is why the next step is to stress what makes you different.
Why should the client pay more to stay with you rather than moving to a cheaper competitor? This is the question that you need to answer for your client. Do you offer an unmatched service and results? Perhaps you offer increased availability that improves your client experience? Whatever it is that makes you unique, you need to highlight this.
It’s essential to avoid being apologetic here. Instead, explain what value you’ll be able to bring using the additional revenue (preferably, something that your competitors don’t).
4. Announce the fee increase
You have the value that you bring and why you are unique in front of mind for your client. Now, it’s time to tell them that you are increasing your prices. Mention what package and price they are currently paying and then the new price and potentially the package. Don’t forget to add the date that the new fees will start too!
When you tell them about the increase, be direct, clear, and keep it brief. Make sure to say why you’re increasing fees AND give them plenty of time to review their budget before the increase takes place. If you’re feeling confident, you could even encourage them to purchase some of your add-on services before the price increase kicks in.
5. Reward your client’s loyalty
Clients love to feel valued and, as you can imagine, if they feel like you are grateful for them and their business, they are going to be far more loyal to you. Bear this in mind when you write your price increase letter.
Is there any way that you can reward your client to show them that they are valued? Can you offer them something to help them transition to the new pricing? Perhaps you can give them a few months at the current rate before the increase takes effect.
6. Remind them of your value
Don’t end the fee increase letter talking about money! Instead, remind them of your value or by referring to a specific goal or desired outcome that you can now help them achieve.
The point here is to end the communication on a positive. By reminding them that higher prices mean higher value, you are helping them see the bigger picture of what this change will really mean to them.
Essential resource: discover the 8 essentials to include in your price increase letter!)
Follow up and stay strong
Always make sure to follow up your letter with a phone call to your client after a few days. This makes sure that they understand the changes and how they will impact them. Remember, stay strong and don’t let them talk you down to their current rate. Know your value and justify your prices.
The perfect fee increase letter to clients is personal and addresses their specific desires and goals for their business. If you can demonstrate the value that you have given them and will continue to give them, they can’t afford to lose you!
Need more help with your price increase letter? Download our letter template to implement a fee increase successfully and keep the clients that you want!