1. Educate Your Staff
Explain specifically why your prices are going up. It could be related to tariffs, raw material costs, product safety regulations or new investments you’ve made. Be sure your team members understand and can speak on the topic. Consider creating a list of frequently asked questions that staffers might receive from clients, then drafting prepared responses to the queries for employees to use. This prep work will help your firm present a unified message and avoid inconsistent or vague explanations, which rankle clients.

2. Be Transparent
The worst way for clients to learn about a price increase is from an invoice. Instead, alert them ahead of time on when they can expect the increases to take effect. Provide a clear explanation supported by facts about what’s driving the hike – including why it’s necessary. Also, consider mentioning strategies you’re using to mitigate the increase. In the case of tariff-compelled promo price increases, it might be helpful to note that prices could fluctuate throughout 2019, and that you’ll work diligently to keep clients informed in advance of changes.

3. Provide a Personal Touch
Reach out consistently to top clients to notify them of what’s happening. This shows respect and appreciation that could resonate with buyers and encourage loyalty. It also provides a forum in which personal relationships can be leveraged to smooth out issues. Plus, the discussion gives VIP clients a chance to ask questions specific to their particular situation.

Consumer prices, on average, have risen about 2% annually since 2016. In the three years prior, the average price jump was only 1%. — Source: U.S. Department of Labor

4. Offer Options
Make clients aware that you can help them find potential alternative products that fit their budgets. These can be items produced outside of China or products from a different category that are less expensive and still serve their promotional purpose.

5. Emphasize Value
Promo products aren’t about to stop being an effective advertising medium because of price increases. They provide a cost-per-impression that remains considerably cheaper than TV spots, ads in newspapers and targeted mobile ads. It’s important for distributors to underscore to clients that a promo product’s initiative creatively conceived and executed will still generate cost-effective ROI.