Shopify store development

Mastering Price Increase Communication: Tips for Clear Communication

5 minutes, 23 seconds Read

Are you worried about telling your loyal customers that prices are going up? Don’t stress! In this Shopify store development, we’ll break down what a price increase is, why it happens, and how to let your customers know without causing a fuss.

1.1  Why Do Prices Go Up?

You’ve probably noticed that prices for things you like tend to change. It’s normal, and companies have good reasons for it. Here’s why:

1. Making and Moving Stuff Costs Money

Companies spend money to make and deliver products. If those costs go up, like paying more for materials or workers, they might have to charge more.

2. Better Quality, Higher Price

If a company wants to improve the quality of what they sell, they might need to charge more. Upgrading materials or making things better costs money.

3. Keeping Up with the Trends

If everyone else in the same business is charging more, a company might have to do the same to stay competitive. It’s like keeping up with the latest trends.

4. Growing the Business

When a company is doing well and growing, it might increase prices. But if they do, they should offer something extra to make it fair for customers.

1.2  Tips for Skillfully Announcing a Price Increase to Your Customers

1. Direct Communication is Key

Imagine discovering that your Spotify Premium bill has surged from $9.99 to $14.99 without prior notice. Such an occurrence would likely incite frustration. It’s unfair for customers to be blindsided by a sudden price increase. If such an adjustment is necessary, proactively reach out to customers using the product or service. Personalize the communication by addressing each customer individually.

2. Provide Ample Notice

Customers deserve sufficient time to acclimate to the idea of a price increase. They may need to reevaluate their budget or explore alternative options. Keep them informed as soon as you are aware of the impending change. Encourage them to place orders before the price adjustment comes into effect.

3. Emphasize Quality with Higher Prices

The rationale behind a price increase may perplex customers, especially those accustomed to purchasing the same product for an extended period. Emphasize the importance of maintaining product quality. Prices may rise to offset increased operating costs, additional hires, or higher material prices. Transparently explaining these factors reassures customers of your commitment to quality.

4. Clearly Articulate the Reasoning

To dispel any ambiguity about the purpose of the price increase, elucidate what led to this decision. For instance, if certain raw materials become scarce and expensive, necessitating a price adjustment, communicate this to customers. Transparency reinforces your commitment to keeping them informed.

5. Internal Alignment is Crucial

Avoid the embarrassment of frontline employees inadvertently charging customers the wrong price due to a lack of awareness. Ensure that all employees are not only aware of the situation but are also aligned in terms of the cost difference, the rationale behind the increase, and the logistical details. Consistency in communication across the organization is paramount.

6. Facilitate Customer Inquiries

Customers may have questions or concerns about the impending price increase. Assure them that they can reach out to anyone in your company, including high-level executives, for clarifications. Providing comprehensive information ensures that customers remain well-informed and are less likely to consider switching to a competitor with lower prices.

1.3  Crafting an Effective Price Increase Letter: Best Practices

Notifying customers of a price increase shouldn’t evoke a sense of dread. Implementing the following messaging tips can simplify the process for your team and ensure customers receive the information they need.

1. Clarity and Conciseness

Customers should not have to decipher or assume the meaning of your communication. Convey essential information at the beginning of the notice, explicitly stating the new pricing and its effective date. Outline any necessary steps customers must take before the increase occurs. Additionally, explain their options and guide where to obtain more information.

2. Empathy Matters

While maintaining a formal tone, especially in certain industries, it’s crucial to infuse empathy into written correspondence. The Netflix letter serves as an excellent example, striking a balance between professionalism and personalization. Customers should feel valued, transcending beyond mere numerical transactions. Put yourself in your customer’s shoes and draft the letter with the understanding of how you’d prefer to receive similar news. Express gratitude for their business before signing off.

3. Avoid Unnecessary Apologies

Price increases are a common and necessary aspect of business. Apologizing may convey uncertainty about the decision and create unnecessary awkwardness. Emphasize the excellent value your product or service provides and price accordingly.

4. Follow-Up Communication

Email notices may end up in spam folders, and physical letters can be mistaken for junk mail. Mitigate this risk by sending a follow-up notice before the increase takes effect. This proactive approach ensures customers receive a reminder and allows for any necessary actions before the change occurs.

1.4  Real-Life Price Increase Letter Examples

1. Fabletics

Fabletics, an athleisure brand, communicated a $5 price increase to its VIP members via email. Although lengthier than other examples, the letter effectively conveys the additional value members will receive alongside the increase. It emphasizes the added purchasing power members gain and redirects attention to the benefits of the membership.

2. Apple

Apple informed customers about a price increase to $6.99 (from $4.99) for its Apple TV+ subscription. The email, succinct and to the point, provides customers with ample time to decide whether to keep or cancel their subscription. The call-to-action encourages customers to revisit their subscriptions, concluding the message efficiently.

3. Upwork

Upwork, a prominent freelancing platform, announced a price increase for its Freelancer fee structure. The announcement, detailed on the website, includes an FAQ section to address common questions and directs users to learn more about the changes. While not explicitly encouraging further inquiries, the letter covers essential touchpoints for freelancers to understand the impending adjustments.

4. Hulu and Netflix

Netflix, in announcing a price increase, adopts a warm and personable tone. The letter assures customers that the update will enhance the value of their membership, aligning with the best practices discussed earlier. In addition, Netflix includes a list of new releases and top picks to further engage customers and highlight the content they would miss if they cancel.


When you have to tell customers about a price increase, keep it simple. Use these tips to communicate clearly and honestly. It might not be the most fun thing, but with the right approach, you can maintain trust and keep your customers on board. Don’t delay – let your customers know in advance and keep the communication open through financial email marketing services. Good luck!


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