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How to communicate a Price Hike?

Updated: Jun 3

The strength and success of a relationship depends on their ability to handle a difficult conversation. A difficult conversation is a dialogue that involves sensitive topics that can result in discomfort or disagreement. It requires deft handling of assumptions of intent and emotions to avoid misunderstandings. A difficult conversation can be a discussion of a topic that can strain relationships.

 

Communicating a price rise is often considered a difficult conversation as it involves delivering unwelcome news that impacts the budget of a member and their relationship with the organization. Since the last 2 years, this responsibility of handling difficult conversation in Toastmasters Clubs (in India) has been assigned to the Club VP- Membership. A delayed fees hike by Toastmasters International, the levy of Goods and Sales Tax up to 18% and a swiftly appreciating US Dollar in two successful programme years made the Toastmasters fees relatively exorbitant.

 

This made one realize the importance of how to effectively have difficult conversations on Price Rise and communicate it effectively without restraining the relationship with a customer or member.

 

1. Announce the Change Gently

● Give customers plenty of advance notice.


● Use neutral terms like "adjust" or "update" to sound less negative.


2. Emphasize the Value

● Explain why prices are going up.


● Highlight the benefits and value customers get for the new price.


● Help customers see how they can get more value for their money.


3. Offer Alternatives

● Consider giving extra perks or incentives instead of just raising prices.


● Let customers know they can try the new pricing risk-free or get a refund if unhappy.


● Discuss options openly to keep customers comfortable with the change.


4. Highlight Continued Value

● Assure your customers that the business remains committed to delivering exceptional value for sustained excellence in service.

● Sincere assurance about continued value can counterbalance any negative perception formed about the price rise.

● It may help you to shift the focus of the conversation from cost to benefits, helping customers see the price change as a necessary step to help the users maintain the high quality they expect.

 

5. Listen and Respond to Feedback

● Pay attention to customer concerns.


● Explain the reasons behind the increase with clear data.


● Communicate confidently but sparingly about price changes.


● Make sure pricing info is easy to find on your website to build trust.


This approach helps keep customers informed, valued, and more willing to accept price changes. The ideal time to communicate about price hike is  a period of 30 to 60 days. This time frame allows customers to adjust to the change and offer valuable feedback. It also provides organizations with an opportunity to strengthen and maintain trust through transparent communication.

 

 
 
 

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