How to Announce a Price Increase to Existing Clients
To announce a price increase without losing long-standing clients, check the contracts first, tell your key accounts in person, then send one short message stating the reason, the new price, the effective date and the notice given. February is when many small firms put new price lists into effect, right after the annual cost review and the contract anniversaries that cluster at the start of the year. Most owners dread that one awkward email, but the real risk sits earlier, in what was not prepared before it went out.
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What should you check in your contracts before you announce a price increase?
Before drafting a word, read every active agreement for the notice period for price changes and any indexation clause. A fixed-term contract may lock the rate until renewal, so for that client the rise applies from the anniversary, not from February. Write down who is entitled to written notice and in what form. If your contracts are stored in EpicCRM with expiry reminders, you can see which renewals fall in the coming months and plan around them.
Segment clients: who gets a call and who gets a letter
Key accounts hear it in a conversation before the email arrives. Everyone else gets a clear written notice. Group your client base by revenue, tenure and contract type, and tag each group so the segments can be reused for the mailing. Where possible, fit the news into your regular client check-in calls instead of phoning only to deliver bad news. Keep the order strict: largest accounts first, the general mailing afterwards, because nobody important should learn about it from a mass message.
What to put in a price increase letter to clients
A good price increase email has five parts and fits on one screen:
- A plain subject line that names the price change.
- The new price next to the old one, so nobody has to calculate the difference.
- The effective date and the notice you are giving.
- The reason in one honest sentence.
- Who to reply to and by when.
What stays out? Apology paragraphs, for a start. Don’t bury the figure in the third paragraph either, and skip vague wording such as “adjustment”. Then personalise by segment: name the service they use and their renewal date, so the letter reads as written for them.
Offer options only if they are real
An alternative helps only when you can actually deliver it at a margin that works. Two usually hold up: annual prepayment at the current rate, or a reduced scope that keeps the old invoice total. Set a deadline for choosing, or the previous price lingers for months through unanswered threads. Clients with an indexation clause simply get it applied as written.
Handling price objections: answers to prepare in advance
Most replies fall into a few predictable types, so write the answers before the mailing goes out. The pattern stays the same each time: acknowledge, restate the reason, point to a real option, and do not reopen the price itself.
- “We have been with you for years.” - Thank them for it, then explain that the new rate applies to all clients and offer prepayment at the current one.
- “A competitor is cheaper.” - Accept that it may be true and describe what your service covers, without attacking anyone.
- “Our budget for the year is closed.” - Propose a scope change that keeps their invoice total unchanged.
Settle up front who may grant an exception, and on what terms. Skip that and two clients who know each other will receive two different answers.
Brief support and log every reaction
Whoever answers the inbox needs the same facts and answers as the person who signed the letter. Give support a one-page brief covering dates, segments, approved options and who decides exceptions. Angry replies should follow your usual path for escalating an unhappy client’s ticket, not an improvised one. Record each reply, call and agreed exception on the client record. In EpicCRM that means the contact’s relationship history, tasks with reminders, and the mailing itself sent through the Mailcraft integration. For key accounts, silence is not acceptance: schedule a follow-up before the effective date.
What about open quotes sent at the old prices?
Honour a quote until its stated validity date, then reissue it at the new rate. List all open offers before the announcement and decide a cut-off for each one. Tell the prospects you are still nurturing about that date in plain words, as a fact, not a pressure tactic.
To announce a price increase well, you need four things in place: contracts read, clients segmented, one honest message, and replies prepared before the first objection lands. That groundwork, far more than clever wording, is what makes keeping clients after a price rise likely.
FAQ
How much notice should you give before a price increase?
At minimum, whatever the contract requires. Where the agreement is silent, give the client enough time to adjust their budget and raise questions before the first invoice at the new rate.
Should a price increase be announced by email or by phone?
Both, for key accounts: call first, then send the written confirmation the same day. For everyone else a letter or email alone is enough, provided it states the new price, the date and a contact person.
What if a long-standing client threatens to leave?
Listen first, without defending the decision straight away. Then restate the reason and offer a real option, such as prepayment at the current rate or a scope change. Log the outcome and the follow-up date on the client record.
