A great moment to discuss a price increase is during the signing of the initial contract, especially if the (POC) has identified additional functionalities beneficial to the client. They would understand that for the company to invest in developing these new features, they need to contribute to the overall production cost. By proposing multiyear contracts with a well-balanced price progression, it's often possible to provide long-term value, offering the vendor the security of a stable business relationship while helping clients budget for price increases and protecting them against sudden price hikes. It's important to communicate any price change as soon as possible, along with the reason for the change, to maintain trust.

Acknowledge the Challenge Start by recognizing that price increases can be difficult for clients, especially loyal ones. Showing customers why you're valuable, "Customers over the past several years have primarily been interested in growth-related value drivers: companies have invested heavily in software in order to drive new revenue streams and accelerate existing ones. Today, however, customers are laser-focused on productivity and efficiency value drivers." Highlight Value Drivers Focus the conversation on the key value drivers and efficiencies your products/services provide. Explain how investing in your solutions can reduce costs, mitigate risks, accelerate time-to-value, or drive new revenue streams for your clients.

It’s a challenging tme when pricing for your product increases. I’ve worked through the change from perpetual to annual licensing in several occasions. In every case clearly and honestly communicating the changes and being prepared to front the client directly has proved the best policy. Hiding behind a company press release is not going to end well.

Prepare: Gather reasons for the increase, like rising costs or product enhancements. Schedule a Meeting: Arrange a one-on-one call to show you value their business. Communicate Transparently: Explain the reasons for the increase, emphasizing improvements in quality or service. Highlight Value: Reinforce how your product positively impacts their business. Acknowledge Loyalty: Thank them for their partnership and express your commitment to excellent service. Offer Options: Provide flexible pricing options if possible. Invite Feedback: Encourage them to share thoughts or concerns. Follow Up: Send a summary email to confirm the new pricing.

We understand that price increases can be challenging. However, due to rising material costs and advancements in our intricate technical products, we've had to adjust our pricing. We believe these changes reflect the enhanced value and performance that our products offer. We're committed to providing you with the best solutions and are open to discussing alternative options or payment plans to meet your specific needs

We must provide advance notice of price increases for technology products and services motivated by rising production and material costs. It is important to note that updated prices reflect the added value of new features, improved performance, and innovations designed to enhance your customer experience. It is important to ensure a smooth transition by offering flexible payment plans and alternative options whenever possible. Our commitment to providing exceptional quality must be the top priority, and we are always grateful for the trust in our organization that makes us evolve and grow together.