In distribution pricing, it’s not uncommon for prices to change. Whether it’s a price increase or decrease, customers need to be made aware of the changes. The best way to do this is through clear and concise communication.

There are a few things to keep in mind when communicating price changes to customers:

1. Be transparent about price changes

Customers appreciate honesty and transparency. When communicating price changes, be upfront about why the prices are changing. it is important to be open and honest about the causes of the price change. This could be a change in the economy, your vendor sets a new price level, a supply chain disruption or even that you had underpriced the items in error. This means being upfront about why the prices are changing and using simple language that everyone can understand. It is also important to be considerate, and to remember that customers may not be happy about the change. However, by communicating honestly and clearly, you can help ensure that everyone understands what is happening.

2. Be clear about price changes

 Customers should be able to understand the new pricing structure easily. Use simple language and avoid technical terms. When communicating price changes, it’s important to avoid using jargon. Jargon can be confusing and intimidating for customers and can make it difficult for them to understand the new pricing structure.

For example, don’t use technical terms if the price of copper has increased and causes a ripple effect through your vendors. Don’t say something like, “emerging markets are demanding more copper for their infrastructure and a miner strike is causing disruption,” unless you think your customer can follow that conversation and you’re willing to engage them. You might cause a lot more headache, questions and confusion. Instead, say something simple like, “the price of copper pipes is increasing around the world, and we have to increase our prices, too.”

Use simple language that everyone can understand. Be clear about why the prices are changing and explain the new pricing structure in a way that is easy to follow.

3. Be considerate with your customers when communicating price increases

Increasing prices is disruptive to your customers’ businesses too. Consider your customers’ budgets and don’t make drastic changes that could price them out of your products or services.

When communicating price changes, it’s important to be considerate and empathetic. Understand that customers may be upset or confused by the changes and be prepared to address their concerns. Try to anticipate the impact on their business and see it from their point of view.

Be patient and understanding when responding to questions or comments from customers. Listen to their concerns and try to find a solution that works for everyone. price changes can be difficult, but with clear communication and empathy, we can make the transition smoother for everyone involved.

4. Be timely when communicating price changes, up or down

Communicate price changes in a timely manner so that customers can adjust their budgets accordingly. This is more than being polite. It’s important to communicate price changes in a timely manner because it helps customers plan. If they know that prices are going to be increasing, they can adjust their projects and jobs in advance. If they know that prices are decreasing, they can take advantage of the change to be more competitive. Either way, timely communication helps customers make the most informed decisions possible. This gets ahead of potential issues and drive customer loyalty by demonstrating that you are a proactive partner in their business.

5. Be flexible and willing to negotiate when changing prices

When communicating price changes to customers, it is important to be flexible and willing to negotiate. Offer options and be open to negotiation to meet the needs of both parties. Customers may have questions or concerns about the changes, and it is important to be open to answering them. It is also important to be willing to work with customers to find a solution that works for everyone.

One technique we’ve seen is when a vendor announces across the board pricing changes but only increases pricing on certain items. You could communicate that you are not increasing on the whole line as was publicized but are trying to work with your customers during the increase. If you’re ahead of the increase – say you know the increase is happening in six months – communicate that you will be changing pricing in three months and that gives you three extra months to negotiate with.

Sometimes, negotiations may result in a compromise where both the customer and business benefit. In other cases, the customer may choose to shop elsewhere if they cannot come to an agreement with the business. However, being flexible and willing to negotiate can help avoid any animosity between the customer and business and ultimately help maintain a positive relationship.

With these tips in mind, you can communicate price changes to your customers in a way that is both respectful and beneficial to your business.