How To Tell Your Clients About Increased Rates Without Losing Him?

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.

After all there are many who are willing to offer the same services at a lesser price. Does this mean you shouldn’t increase your rates? The answer is an emphatic no. Increasing rates, in today’s world, calls for a lot of tact. It should not look or sound highhanded and one-sided. It should take into account other extraneous factors. And most importantly, a price hike should be conveyed in a way that would not jolt customers out of their senses.

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.

There can be no substitute to preparing a client for the impending rise. Do so while signing the contract, or if the rise is necessitated by a sudden development, present the bigger picture before the client. Make sure the client can relate to what you have to say. When a client isn’t blind sided by the information, he is more empathetic towards a sudden price hike. It is also important to make sure that the increase doesn’t take costs beyond your clients reach.

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.

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