COMMUNICATING PRICE INCREASES
Absorbing rising costs protects the relationship short-term – and kills your margins long-term.
Price increases don’t have to trigger churn. Clients respect honesty and context. What they don’t respect is vague language that sounds like corporate spin.
The scenario:
You’re raising managed services pricing by 8-12% due to increased tool costs and expanded coverage. You need to communicate this without triggering churn.
The prompt:
You’re announcing a price adjustment to a client.
Background: [paste reason for increase and any new value-adds]
Write a 150-word email that:
– Opens with appreciation for the partnership
– Explains the why honestly (costs, expanded services, market reality)
– Highlights what they’re gaining, not just what costs more
– Offers to discuss in a call if they have concerns
Tone: Direct, respectful, and confident – no over-apologizing.