How to Discuss a Price Increase With Clients

As account executives, the last thing we want to do is increase a client’s price. However, in this economic environment, increases occur daily. Of course, there are many reasons for an increase (see below), most of which protect or benefit sellers and others are beyond your control. Typically, though, customers see it differently. In fact, they might feel annoyed, disappointed or even betrayed.   

While the increase itself is never personal, it can feel that way to customers. Their agreements took time. They invested in you and your organization. So, when the time comes, have a plan. With so much at stake, the right approach is key. After all, it could determine if you preserve the relationship and keep the client. 

A trained salesforce prepared to communicate different price increase situations is crucial to successful sales in a changing economic environment. Janek Performance Group is the expert in improved sales performance and productivity. Here, we will outline how account executives can minimize the impact of a price increase.

The Justification of Price Increases

Before presenting a price increase, account executives must understand the need. If you don’t understand why your organization is raising prices, you can’t effectively convey it to clients. Raising prices can offer the following benefits for your business:

• Reinvest revenue
• Improve the quality of products and services
• Redirect resources
• Increase flexibility
• Manage cost inflation

Assess the Market

Understanding the market can help determine when and how to raise prices. Typically, every six to nine months is a reasonable time frame to assess conditions. Then, consider the following:

• Current demand
• Market trends
• Economic climate

Of course, economic conditions will affect demand, as will new products or services. It’s important to stay vigilant about factors that can shift the demand curve, like consumer preferences or income changes. AEs must be up to date on who’s ordering what and why. They must be sure they’re not offering yesterday’s widgets at today’s prices.

The current market is important, but change can happen in an instant. Stock market volatility can significantly improve a company’s gains or maximize its losses. Applying larger price swings can create opportunities for growth with a higher number of sales or a drop in revenue if your clients don’t see the relation between prices and value. Before raising prices, be sure you consider trends and forecasts. 

In addition, understand economic conditions. This not only affects your business. It will also affect your customers and their propensity to buy. You must know how a price increase impacts your own and your customers’ needs.

Reasons for Price Increases

Start by explaining why you are raising prices. Common reasons can include:

• Materials and production costs
• Changes in global regulations
• Industry trends
• Growth

As the cost of materials and/or production rises, businesses must raise prices. It’s simple economics. This is something even the most frugal customers will understand. However, it must be explained rationally and with empathy.

All businesses must keep up with their industry. If they don’t, they will quickly fall behind or, worse, disappear. A competitive analysis of industry standards can reveal deficiencies that require a price increase. There is nothing wrong with explaining this or, better, sharing specific data with the client.

All companies strive for growth. However, that doesn’t mean clients like it, especially if your growth negatively affects them. Here, then, it’s important to augment the price increase with additional benefits or services you can provide.

Tariff Changes Present a Unique Challenge

Businesses worldwide face economic uncertainty due to changing trade tariffs between leading manufacturing countries. To this day, predictions forecast a sharp price increase that will most likely impact your costs and relationships with your clients. While these changes are beyond your control, you can change your strategies to maintain sales despite the cost increase.

Businesses must apply proactive strategies to mitigate the impact of tariffs. Streamlined internal communication and a highly trained salesforce are key for keeping customers loyal and protecting your profits from tariffs. Adapting your strategies and processes is key for mitigating potential losses, especially for existing orders.

To adapt to future tariff increases, you must consider:

• Efficient internal communication: Tariff policies in the current economic environment could change daily. Sharing price changes as effectively and quickly as possible will allow stakeholders to adapt accordingly.
• Manage expectations: Transparency is key to educating both suppliers and customers about the impact of tariffs on your prices. Keeping them up to date with changes will build their trust in you and help them understand the bigger picture.
• Prepare your team for volatility: When pricing models change, your organization should, too. Educating your team on tariff impact and preparing them for handling inquiries and objections can help them manage and secure sales.

Pre-Price Increase Steps

In the best-case scenario, your organization prepared you in advance. In the worst-case scenario, you were informed at this morning’s sales meeting. Regardless of lead time, don’t be the account executive who informs a customer of a price increase out of the blue. This is the surest way to antagonize.

Taking control of the situation and opting for an informative and personalized approach will help mitigate the impact of the news on your clients. HubSpot lists several important tips to announce a price increase:

• Direct contact
• Lead time
• Tailored messages
• Better quality or service
• Flexible pricing

Imagine you’re a loyal customer. You’ve been reliably paying a set price for a significant amount of time. Suddenly, the price went up. If that’s not bad enough, imagine first hearing about it secondhand or in a generic mass email. Direct contact shows customers respect and lets them voice their concerns.

The more time you can give the customer, the better. This helps them to plan and manage their budgets. No matter the reason for the increase, they will appreciate your honesty and transparency. It also gives them the opportunity to buy more at the current price in advance of the increase.

All customers want to feel unique. A generic message might be expedient, but it conveys the opposite message. Whenever possible, tailor your messages to the distinct segments of your customer base. Consider their current payment plans and specific needs.     

Often, sales organizations must raise prices to maintain the quality of their products or services. Most clients appreciate this. After all, quality is essential to them as well. Therefore, assure them that the value they receive will continue, if not improve, with the increase. Whenever possible, reward loyal customers. Flexible prices can help, as can little favors. For example, consider delaying their increase or offering special perks or privileges.

The Approach

When having a conversation with your client, ask what they are seeing on their end. Inquire about business questions that relate to inflation and its impact. Questions you might want to consider are:

1. Are supply chain issues affecting their operation?
2. What’s the impact of the gasoline price?
3. Has inflation changed their priorities?

Having a candid dialogue around how inflation impacts their business is a wise move. First, you are showing you care. Second, you are demonstrating business acumen. Third, you will gain insights into the clients’ plans and priorities. These help uncover potential solutions you might not have considered. Finally, it provides valuable insights that will help with future conversations with other clients and prospects. During the conversation, agree that you are seeing the same things. Once you are both in the same boat, you can share. For example, “I’ve heard management is reviewing our pricing policy. Nothing is official yet, but everything is under review.” Your client will likely want more information. Assure them you will advise when you know. As a side note, the bigger the client and increase, the more advanced notice the better.

The Price Increase Conversation

As the account executive, how you deliver the price increase to your clients will determine how they react. It must be handled in a confident and concise manner. In other words, prepare in advance. 

Start with talking points or even a script. And practice your delivery before you contact the client. Consider role-play or asking another account executive to provide feedback. The more valuable the client, the more practice you need. It is nearly impossible to deliver a confident message if you are anxious, lack talking points and have not practiced.

In your delivery, balance confidence with empathy. You do not want to come across brash, too assertive or apologetic. Never apologize for a business decision your company made. But you can acknowledge that you feel uncomfortable. As much as possible, strive for empathy, likening their disappointment to your own difficulty. Here are examples:

• I feel awkward bringing this up…
• I understand…
• I know you are concerned…

The key is to be authentic and transparent, but remember, emotions are contagious. Maintain a professional and confident demeanor. What you don’t want to do is open the conversation with:

“I’m sorry to be the one to tell you…”

Present the reasons why. When you use the word “because” and provide a reason, you will receive a more positive response. For example, “The reason for the price increase is that our vendors have increased our supply cost. And we strive to deliver the best quality.” In your pre-price call, you determined the effect of inflation on your client’s business. Craft messages around that dialogue. At this point, validate the reasons you provided. 

After you have explained the reason, thank your client for their loyalty: 

“I appreciate your openness and will share your feedback with my executive team. We appreciate the opportunity to serve you.” 

Be Prepared for Push Back

Even if you did everything right with the price increase conversation, some clients may push back. Some might even argue or blame you. Don’t be surprised if you hear,

“We’ve been a client for years, and this is how you reward our loyalty? Let me talk to your manager, please.” 

Again, don’t panic. Prepare for pushback. In your planning, consider the negative things your clients could possibly say. You can make a list of reasons your buyer might become hesitant and write your answers in advance, leading with empathy and information rather than reacting. Some common reasons for sales objections when discussing a price increase with clients include:

• Budget limitations: Every business works with an established budget. Some customers lack the financial resources to adapt to the price increase, while others may look for a special deal or a lower price.
• Time limitations: The internal processes for an increased budget vary from one company to another. Some customers will be able to adapt to the price increase but need more time to adjust and would benefit from a flexible solution.
• ROI concerns: Customers must see a clear return on investment that justifies a price increase. In these cases, focus on how your offerings will generate revenue for your customer.
• Need for information: Some customers must convince their team to get internal approval or show a lack of trust in your company. You can share relevant information about your product or service, as well as pricing policies, to encourage the customer to invest.

Again, don’t apologize. It sends the wrong message. Also, don’t over-explain. Too much can expand the problem. Instead, frame the conversation around the unique value you provide. Ideally, your management team has created a communication strategy, so you have a consistent message to deliver.

Delivery Channel for Price Increases

If you are a field rep visiting clients in person, in-person meetings are best to deliver price increases. If you are an inside account executive, videoconference. The third and final option is the telephone. This is not a situation where you can send an email or text. Again, the more valuable the client, the more likely you will need to be in person. 

The Final Word on Price Increase

The price increase conversation is one of the hardest in sales. How you handle it will impact the outcome, including relationships and future opportunities. As the account executive, you want to build value with every client conversation. Price increases are no different.

This can separate you from the competition and position you as a trusted advisor who adds value. As Warren Buffett said, “Price is what you pay. Value is what you get.” Focus on the value you deliver, and your clients will appreciate your approach. Request more information about how training can prepare your team for productive conversations and successful sales.

Updated: 06/09/2025

Nick Kane

As Managing Partner of Top 20 Sales Training and Consulting company Janek Performance Group, Nick Kane works with corporate clients to develop sales strategies and implement sales training programs that focus on cultivating a more client-focused environment that drive results in today’s marketplace. During his career, Nick has trained more than fifteen thousand sales professionals worldwide, and he is passionate about helping sales leaders and sales professionals improve their careers and, as a result, their lives. He is coauthor of the book Critical Selling and a regular contributor for Training Industry and Selling Power.

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