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How to announce a price increase with the right story.
Two common pieces of advice will actually alienate your clients and customers.
I’ve used a particular massage service for years. Last week they sent all their clients an email message. They’d raised prices by about 20%. “Many of you tip by this amount,” they said. “So henceforth, we will no longer accept gratuities.’
What’s the story they’re communicating? “If everyone tipped 20% we wouldn’t have to do this.”
Clearly most clients are not tipping at this level; if just a few failed to tip, the price increase wouldn’t make a dent in their profits.
Some clients won’t tip at all because they perceive massage as a medical service. It’s not a spa, they say.
On the one hand, I applaud the principle.
When you own a service you charge what it’s worth and keep all the money. You shouldn’t need tips to close the gap between what you charge and a fair price.
On the other hand, as a marketer who falls into the non-tip group, the message makes me cringe: “You cheapskate! You should have tipped.”
So what’s the best way to announce a price increase?
When I googled the question, I found two types of strategies…and I’ll tell you why…
