Once you’ve been in business for a while, there will be a time when it’s right to increase your fees, but just how do you write a price increase letter?
Every self-employed person has the same worries when it comes to price increases.
Will I lose customers?
Will it stop me from getting new customers?
Will I price myself out of the market?
Will it harm my positive reputation?
Every business has had to increase its prices at one point.
Paying attention to how those big businesses present price rises to their customers can help you when you write a price increase letter for your own clients.
These huge multi-national companies pay people to research and write their letters so that they retain as many customers as possible, and maintain their reputation. These same techniques can work for your business too, even if it’s just you.
- Give your clients plenty of notice
- Contact them directly
- Use a friendly tone
- Be unapologetic
- Present value
- Thank them for their loyalty
- Finish with a clear call to action
- Offer a lower-cost option
Table of Contents
Give your clients plenty of notice.
One month is sufficient for them to change their direct debit, budget for their next payday and if they wish to, give you the appropriate notice as per your contract if they wish to cancel your services.
It’s also a good idea to send a short reminder follow-up message a week before the increase in case they haven’t changed their payment methods or need the reminder to leave you more cash if that’s how they pay.
Contact them directly.
An Instagram post is not the right method of delivery nor is a general post on your Facebook or website.
Customers want to feel valued and cared about, especially in the pet sector.
It’s best practice to provide the details in writing, so use the email you collected on their initial forms and contract.
Use a friendly tone.
A friendly tone is the tone your clients are probably used to when you communicate with them.
Be professional but don’t suddenly start using an overly formal tone.
Be unapologetic.
You are not sorry. This is something you need to do for your business and income in these tough times.
It’s good practice to include a reason, explanation or justification but don’t offer an apology for it.
The increase in petrol, insurance and food prices is not your fault. Inflation and the cost of living rising is not your fault so don’t apologise for it.
Present value
This is an important point to ensure you cover in your email.
This is your opportunity to retain your clients, show them and remind them what you offer, how you benefit them and why they shouldn’t go and use someone cheaper.
Examples of value;
Up to date first aid certificate
Training courses you’ve been on
Dog related qualifications
Up to date DBS check
Smaller group walks than your competitors
Offering solo walks
Taking weekend bookings
The bespoke crate system in your van
Your weekly van hygiene routine
Showing value means pointing out all the things the customers get for their money. And if you offer something that most of your competitors don’t, point it out!
Once you and your customers can see how much value you offer, it won’t matter if your competitors are cheaper. People don’t buy prices they buy the service and the person offering it.
Thank them for their loyalty.
If you’ve had a client who has never received an increase in fees over 3 or 4 years, point it out that this will be their first and that you thank them for their continuing loyalty.
Finish with a clear call to action
A call to action is one clear thing you ask your client to do at the end f the communication.
Imagine how you’d like your client to respond.
Would you like them to email back and confirm receipt or is that too formal for your clients and your business?
Perhaps you know your clients like to talk things over so offer a set time for a chat. E.g. “If you’d like to discuss the increase I’ll be available on my work phone between 9 and 12 on Saturday 9th May.
However, the best way to retain clients is to let them know that they don’t need to do anything to continue receiving your services at the new prices.
The path of least resistance works and it’s why insurance companies, phone contracts and web hosting offer auto-renewal options with their policies. Because doing nothing is easier than shopping around.
Offer a lower-cost option
If a client responds and wants to cancel your services, be ready to offer a lower-cost option to them.
Many large companies will have a set discount they can offer if you get put through to their cancellation departments and this is a technique you can also use in your business.
If someone is cancelling hour-long solo walks, do you offer 30 minutes?
If they usually have Mon – Fri walks would they be happy with walks Mon – Thurs and a pop-in to let the dog out into the garden on Fridays?
Offer a solution which might benefit them and your business.
And finally…
If they do cancel completely, it’s sad to see the client and their dogs leave, but the reality is that this frees up a space for a client who will pay the new rate.
Example letter template
Dear (Customers name),
Just a quick email to let you know about the price changes starting from the first of next month (Insert actual date)
Due to ever-rising costs and inflation, we can no longer hold off on these increases meaning that all of our walks will increase in price by £1 with the exception of our 30-minute walks which will increase by 50p.
This means our new prices are as follows;
<List walks and prices here that you offer>
As you can see we remain competitively priced in this area for someone with (insert number of years) experience of offering small group walks from CRB checked and First aid trained professionals.
We’ve loved walking (Dog’s name here) for the last (insert amount of years), thank you so much for sticking with us and we look forward to walking (dogs name) for many years to come.
Other than adjusting the amount you pay us, there’s absolutely nothing you need to do to accept the new pricing and continuing to book with us will be taken as acceptance of the new prices.
We look forward to seeing (dog’s name) on (Monday or whatever day you have him next).
Yours,
Your Name
Your business name
AFFILIATE DISCLAIMER
The dog walking coach website is supported by our visitors. Some of the product links on this website are through affiliate schemes such as Amazon. This means that I earn a small commission if you choose to purchase something at no extra cost to yourself.