You’re about to make a price increase to your SaaS product or software company.
And you’re worried, when you actually make the change, that all your customers are going to go bye-bye.
And if you’re anything like me, you’re thinking back to your Econ class in college.
If price increases, then what happens to the supply and demand curves?
Eeesh, that’s not what your business wants!
But here’s the interesting thing:
Your Econ class operated on theory and the concept of “Ceteris paribus” meaning that if all other things were created equal (perfect substitutions, etc), then what would likely happen?
The great thing about real life is that things don’t operate in a vacuum. And things don’t happen as if all other things were created equal.
If you have a sticky product that adds value to your audience, and you increase your prices with a solid, well-thought out price increase announcement strategy, then you’ll be just fine.
Read on for tips on how to announce price increases effectively.
Table Contents
- Price Increase Announcement Examples
- How do you announce a price increase? Step-By-Step
- How do you announce a price drop to clients?
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Price Increase Announcement Examples
Why reinvent the wheel? It’s the same thing we talked about in another article about release notes templates. Folks out there try to start from scratch when instead they can just replicate examples and templates from existing, trusted companies.
Here are a few price increase announcement examples that you can take a look at for inspiration.
QuickBooks Online
As you see in the screenshot below, they really have thought through things and made the price change announcement clear.
No action needed on the clients’ end (which eliminates the risk of being ghosted by clients if you instead require them to give approval for the price increase)
Spotify
Spotify is a well-known brand. And they have quite a bit of buy-in from their users.
So in their price increase email to us, they kept it short and sweet. No reasoning for the price increase. No “OMG we’re so sorry we have to do this!”
Just the price increase and that’s it.
How do you announce a price increase? Step-By-Step:
A price increase announcement is an action taken by a company or individual to announce that the cost of their goods will be increasing. In most cases, the company does this to stay competitive with other companies and products in the marketplace or to cover rising costs.
Whatever the reason, it impacts your customers.
And Here are some tips to successfully announce price change to your audience!
- Open and Honest Communication
When it comes to adjusting prices or introducing updates, it’s vital to be transparent and forthright with your customers. By proactively informing them about impending changes, you establish a foundation of trust and minimize any potential negative impact.
- Illuminate the Reasons Behind the Shift
Unveil the driving forces behind the price adjustment to your valued clientele. Often, this shift arises from the introduction of new product features that enhance their experience. To ensure a crystal-clear understanding, articulate the added value in a compelling manner. Consider leveraging the prominent space on your website’s main page to convey this news.
- Exclusive Opportunity to Maintain Current Rates
Empower your existing patrons by offering an exclusive window to retain the current pricing structure. For example, extend a limited-time offer for maintaining existing rates when customers opt for an annual payment plan. This strategy fosters mutual benefits for both your business and your clientele, illustrating your dedication to their satisfaction.
- Attentiveness to Customer Insights
Proactively gather feedback from your customers and promptly address their inquiries whenever feasible. By doing so, you cultivate a robust bond with your client base and underscore your commitment to their needs. Prioritizing their concerns is crucial, as even in less-than-ideal scenarios, your responsiveness conveys your understanding.
- Optimal Channel Selection for Announcements
Craft your announcements to reach each customer effectively through the most suitable medium. Ensuring that your message resonates with the majority of your customers is essential, and guaranteeing comprehensive awareness of the price changes is paramount.
This is frequently done via email. But it can also be done through in-app notifications, banners, and more.
While AnnounceKit has specific features like a release notes tool, it also has much more than that… All things announcements (widgets, emails, banners, and more).
- Tailoring the Perfect Communication Tone
Discern the unique characteristics of your diverse customer personas to strike the perfect communication chord. Adjust your wording to cater to various segments effectively. Harness the power of user segmentation to identify the language that resonates best with each group, fostering a stronger connection.
There are other ways that you can make announcements interesting.
Price Increase Announcement Template
Hi there,
As X [date] approaches, we’ve reached a point where a pricing update is necessary to maintain our long-term investment in making [company name] the most powerful, user-friendly, and intuitive [descriptive keyword for your solution] in the world. We’re adjusting our pricing starting **[price increase date] **, to more accurately reflect the value you get and to make room for some great new social proof tools and features coming your way. Here are the new tiers: Here are the new tiers:
- [Plan 1]: New Price – Old price
- [Plan 2]:
- [Plan 3]:
- [Plan 4]:
This change will help us develop better features that are easy to use while still keeping our prices competitive. In fact, we’ve been able to add more than [number of new features] new features & integrations under the hood, over the past two years without raising our prices. We are already well-known for our excellent customer support and that will never change, for both free and paying customers. Our Premium Support is available for everyone via the live chat on our website.
Upcoming Features:
[ New Feature 1 ]: Explain your feature here
[ New Feature 2 ]:
[ New Feature 3 ]:
[ New Feature 4 ]:
Have any questions or concerns? Just reply to this email or reach out via the live chat on our website.
Thanks always,
How do you announce a price drop to clients?
Many business owners are asking themselves, “How do you announce a price drop to clients?” You need to think about how your company’s customers will react. The price drop announcement should let the customer understand what is happening. Here are our tips for managing your price drop announcement!
1- Explain What Made Price Drop Possible
It is the most critical part of the price drop announcement since some of your customers might be suspicious about the price drop. Put differently, and they might not feel good about the change unless you explain them clearly.
2- Ensure Your Customers That Quality Will be the Same
Your customers’ concern about quality is highly understandable. Before they feel concerned about the quality, you need to make sure that your service quality will be the same. That might be effective to show some concrete examples or proofs for it
3- Show your Goodwill
Demonstrate that you understand your customer`s concerns. In a nutshell, thank your customers for being your customers and use your empathy skills. In the long term, it will help you to build stronger relationships.
4- Do not Use a Marketing Jargon
Marketing jargon for a price drop can be irritating in most cases. However, it also depends on your business type and the reason for a price drop. It is safe to be natural and avoid marketing jargon for a price drop to your existing customers.
Price Decrease Announcement Template
Dear [Customer]:
We are so grateful for the pleasure of serving you and hope we met your expectations.
At [Your Company], we aim to improve our customer value and satisfaction. We are working hard to find new ways to increase the satisfaction of our community. We regularly review our expenses and price lists to provide our value at the most affordable price possible.
We are happy to announce the good news! We have decided to reduce our price from [Old price] to [New Price].
Our price change will be valid, starting from [Date].
As we put our customers’ happiness as our priority, we certainly believe that providing maximum value at a fair price will increase customer satisfaction.
Have any questions or concerns? Just reply to this email or reach out via the live chat on our website.
Thank you
Feedback Collection
Collecting feedback from your customers is an important and sometimes challenging task. Analyzing customer feedback helps you to understand your customer better and fastens your growth!
Also, we recommend you to read “How to Ask for Feedback? 7 Smart Ways to Collect Customer Feedback to Improve Customer Experience
