Telling your clients about a price hike is never music to their ears. An announcement to this effect is always met with resentment. After all shelling out more pinches everyone. In today’s world of cut throat competition, conveying a price rise can upset a client to the extent of severing ties.
A price hike should not come out of the blue. If so, a customer will react sharply to the news and begin to entertain thoughts of discontinuing.
Increase in fees must take into account extraneous factors like the clients economic condition. Business is all about building relationship and rapport. Having a good understanding and sustaining it is far more important than earning a few extra bucks. Taking a clients sensitivity into account can benefit you in more ways than one.
If a hike is on the cards, make sure you put the client on prior notice. Giving your client adequate time to adjust with the rise, helps him tailor his accounts accordingly and also provides him some breathing space. He gets to understand that you are not insensitive to his plight and thereby end up sending your right intent across. In the process you also provide your client with the option to seek alternatives and thereby part on a good note. This in turn leaves the door ajar for a future comeback. On the contrary if the price hike leads to a bitter parting, you won’t get a chance ever again to work with your client.
Increasing business price calls for a lot of tact. Your approach needs to be well calculated and properly measured.