Ask any accounting client about how they would act about a price increase and most, if not all of them, would say the same thing. Nobody wants to pay more than what they’re already paying — but sometimes, there are unforeseen circumstances that force businesses to make a major price change. Most would think that clients get turned off right away, but there’s an art to crafting a price increase notice to clients.
Why Your Accounting Firm Needs a Business Letter for Price Increase
To announce your firm’s price increase, you need a well-written price increase letter. Below are the top three reasons why your accounting firm needs a business letter for price increase.
1. For Transparency
Your clients need acceptable reasons as to why you need a price increase. Make sure that you include the circumstances that pushed your firm to go for increased pricing, whether it’s your suppliers, market demand, or wage raise that’s mainly responsible for your price increase — these things must be declared for the sake of honesty and transparency.
2. For Clarity and Formality
Many would think you lose clients when you make a price increase announcement, but for skilled marketers, this can be a way to retain your clients and show your professionalism while you’re at it. To demonstrate this, clarify and formalize your price increase through crafting an increase rate letter that’s precise, diplomatic, and professional so that you don’t shock your clients with their billings.
3. For Credibility
If you want to remain an industry leader (or establish leadership if your firm is just starting out), then a price increase letter is a good way to maintain your clients’ trust. Especially if situations like a sudden price increase arise, it’s a good way to advise your clients in advance so that they can prepare their budgets accordingly.
The Basics of How to Inform Clients of Price Increase
If you need to know how to tell clients about price increase, then we have just the list for you. Here are a few basics on how to inform customers of price increase that every accounting marketer should know.
1. Be ahead of time as much as possible
An advanced announcement of a price increase communicates a sense of preparedness, client consideration, and an overall touch of professionalism to your firm, which are plus points to how your prospects and your current client pool perceive your accounting practice.
When you make a price increase announcement ahead of time, your reputation sticks to your clientele. This can help promote your name to those who aren’t aware of your accounting firm, either by word-of-mouth or through social media. Needless to say, knowing how to inform customers of price increase early earns your practice a much-needed boost to its brand image.
2. Make sure you get your tone right
When announcing a price increase, ensure that you consider your circumstances. If the status of the market necessitates a price increase, then communicate the cost increase in such a way that highlights its positive impacts, like the corresponding increase in the quality of your services, or the much-needed adaptation of fresher, more innovative accounting practices.
On the other hand, you can approach your price increase announcement with a more apologetic tone if internal issues are involved. Especially for accounting marketers, don’t forget to insert a sense of assurance to your clients that despite a forthcoming increased pricing, their accounts are intact and that you’re actively resolving concerns within your firm to prevent any more unforeseen price increases.
3. Relay your appreciation for your clients
Amidst a major price increase, your clients need to feel appreciated. This gesture can make all the difference when it comes to retaining your current client pool — by recognizing how important your clients are to your business, they can look past the negative impacts of your price increase announcement and continue working with your firm.
4. Time your price increase announcement right
Don’t confuse this with a price increase announcement ahead of time — that’s a different strategy altogether. Aside from an early announcement of price increase, sending your accounting practice’s major price change to your clients during a particular time of day can make or break your firm.
An ideal time to deploy your price increase announcement emails is during active office hours. This tells your clients that you’re transparent, professional, and ready to face the consequences of announcing a price increase, even if it means risking losing longtime clients.
5. Stick to what’s agreed upon
Announcing a price increase means that your current clients will pay you only what was agreed upon in your business letter for price increase. To maintain your credibility as a firm and trustworthiness as a business partner to your clients, don’t charge your clients more than what they agreed to pay.
Note that increased pricing isn’t gradual and assumed. Your message must be clear to your client pool, so you don’t lose your clients and your practice’s good reputation as well. Practice fairness in your price increase announcement and make communication with your clientele clear and deliberate.
Creative Ways to Announce a Price Increase
It’s one thing to know how to write a letter for price increase and convey your message to your clients professionally — to retain credibility and to remain transparent. However, it’s another thing to let your creative juices flow when it comes to making a price increase announcement.
1. Announce your price increase over a call
In theory, it might sound like tedious work. But if a business letter for price increase starts to sound too cookie-cutter, then an option you have is announcing your price increase over a call.
To execute this, make sure that a standard, pre-written script is made for clients, but it’s up to you to make the call as personalized as possible, like including your client’s name in it.
2. Make a price increase announcement via video
Another way to make a price increase announcement is by tapping your videographers and video editors — be they in-house or externally sourced — and getting your studio lights ready for a video announcement for price increase.
Ideally, tapping an esteemed C-suite officer that’s most involved or most knowledgeable regarding the details of the price increase should face the camera and announce it to the clients, but whoever is most marketable and PR-friendly in the company will do.
3. Send a price increase letter through social media
Another way to make a price increase announcement is by tapping your videographers and video editors — be they in-house or externally sourced — and getting your studio lights ready for a video announcement for price increase.
Ideally, tapping an esteemed C-suite officer that’s most involved or most knowledgeable regarding the details of the price increase should face the camera and announce it to the clients, but whoever is most marketable and PR-friendly in the company will do.
4. Organize a meeting regarding the price increase
Be it an online or a face-to-face meeting, accounting marketers strategize and gauge which arrangement works best. Compared to making a price increase announcement via video, a meeting can feel more personal and intimate. Since it involves stakeholders and/or clients, be they recurring or new ones.
Ideally, your firm’s price increase can be announced through a virtual meeting, which saves time, money, and team efforts for organizing it. However, if accounting practice owners feel as though it’s best to do it in person, then that’s alright as well. Especially if it’s accompanied by other announcements like major changes in the business structure, in-person meetings can work better in some instances.
Price Increase Template for Accounting Firms: Sample Rate Increase Letter
Looking for a template to announce your price increase? Look no further — we have a price increase template for different types of billing. Especially for accounting marketers finding ways on how to inform clients of price increase, we offer you a notice of price increase sample for multiple billing categories.
General price increase template:
Good day Mx/Mxx [Name of Client] —
As you are our valued client, we want to inform you about the forthcoming changes to our pricing. Starting [INSERT DATE], our new price will be [INSERT AMOUNT] for our [INSERT TYPE OR RANGE OF SERVICES].
Rest assured that this new pricing will help us provide you with better services. We appreciate your support, and we look forward to continuing working with you from this point forward.
Sincerely,
[SENDER NAME]
[TITLE]
Billing for monthly recurring fees:
Good day Mx/Mxx [Name of Client] —
We have carefully reviewed the costs for our operations, and we have decided to increase our monthly engagement pricing. This means that starting from [INSERT DATE], your engagement will cost [INSERT AMOUNT] per month.
As costs have been steadily increasing since [INSERT TIME], we’ve chosen to make necessary adjustments in our pricing, making sure that we can provide you with the same quality of services that you’ve always trusted.
We thank you for your continued partnership with us.
Sincerely,
[SENDER NAME]
[TITLE]
Billing for hourly fees:
Good day Mx/Mxx [Name of Client]
As you are our valued client, we want to inform you about the necessary forthcoming changes to our hourly rates. Starting [INSERT DATE], our new prices will be [INSERT AMOUNT].
This is due to major increases in costs. Businesses across the country have also done the same, including ours.
Rest assured that this new hourly rate will help us better provide you with our services. Expect the same level of quality you’ve always gotten from us.
We appreciate your continued support, and we look forward to working with you going forward.
Sincerely,
[SENDER NAME]
[TITLE]
Billing for fixed fees:
Good day Mx/Mxx [Name of Client]
As you may know, many firms across the country are experiencing [SITUATION], which includes our accounting firm.
In line with this, we would like to inform you of a necessary forthcoming increase of [INSERT AMOUNT] in our [INSERT SERVICE LINE] pricing/increase of our [INSERT SERVICE LINE] pricing by [INSERT PERCENTAGE], which amounts to a total of [INSERT AMOUNT] each month. Note that the price increase takes effect once our current engagement ends. Should you decide to renew our engagement, the new agreement will reflect this pricing.
As you are our valued client, we’ve exerted a lot of effort to delay this price increase and minimize the impact of the said situation on all our clients. Unfortunately, the [CIRCUMSTANCES] gave us no other choice but to comply and make changes to our pricing accordingly.
Rest assured that this change in our pricing will help us continue providing you with high-quality services that you’ve always trusted and relied on.
We appreciate your continued support, and we hope to continue working with you.
Sincerely,
[SENDER NAME]
[TITLE]
Dealing with the Impacts of Price Increase in the Accounting Industry?
Factors like market demand, inflation, business costs, and newer business needs all contribute to the price increase in the services that your firm offers. As an accounting practice owner, you must be steps ahead of your competitors, like being open to embracing untapped business models that enable your firm to survive the ever-changing industry, like offshore accounting.
This model not only increases your capacity by letting accounting professionals across the globe take charge of labor-intensive tasks — it also significantly reduces operational costs for your firm, while retaining the level of quality when it comes to tasks like bookkeeping and auditing.
Tap the Best Offshore Accounting Professionals with TOA Global
TOA Global is your partner when it comes to offshoring accounting professionals like CPAs, staff accountants, billing analysts, and more. With offshore CPAs, your firm can increase its capacity and significantly reduce operating costs without sacrificing the level of team talent.
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