The Bottom Line: Effective price communication can improve speed of price adoption by 80% when distributors use personalized, multi-channel approaches with 30-60 days advance notice. This guide shows you exactly how to implement the WHEN-WHO-HOW-WHAT framework that leading distributors use to turn price increases into trust-building opportunities.
In This Article
Why Does Price Communication Matter More Than Ever for Distributors?
Price communication is an often overlooked opportunity, especially in times where your customers are waiting in uncertainty. When done correctly, it can significantly influence customer perception, trust, and purchasing behavior.
To do so successfully, businesses need to focus on three foundational components when crafting their approach to price communication. This post will explore these key areas in depth to provide actionable insights into how organizations can elevate their pricing strategy through powerful and deliberate communication.
Using the WHEN-WHO-HOW-WHAT Framework
A successful price communication plan begins with thorough preparation and a clear strategy. Believe me, most companies I have worked with wait until the witching hour to craft something, keeping customers in suspense of what to expect.
When should I communicate price changes?
The WHEN part is easy - it simply translates into when do you plan on sending out a communication. In this volatile time, I would recommend sending something out when you know your prices will definitely change. In the past, the tariffs seemed more predictable. Right now, it is a volatile affair that seems to be changing daily. When the signal from your own rising costs actually manifests, it probably is a good time to get those letters ready.
Who should I communicate price changes to?
The second piece is WHO are you going to provide with the information. If you are a distributor that has thousands (or even tens of thousands) of customers - do all of them really need to be informed? Experience says no. One-time buyers are opportunistic price buyers, and small customers often exhibit the same behaviors. For these customers, changing prices is a routine affair due to infrequent buying patterns, meaning they most likely do not need any information. Medium and large customers represent a different segment that do need more information such as when will the new pricing go into effect and what the change will be. More on that later.
How should I communicate price changes?
The final piece is HOW the information will be delivered. Will it be by a dedicated salesperson, route driver, email, or even good ol' USPS? A hidden opportunity here is once you decide the population that will be served is keeping track of the progress of communication. Many companies simply leave it to the will of the salesperson, and that price letter may or may not make its way into a customer's hands. That could be a missed opportunity to communicate from an organizational level.
All well and good, it won't stop deliveries from going out the door. However, it is a missed opportunity for the organization to get in front of customers. The three things I recommend having a perspective on are WHEN, WHO, and HOW.
Structuring Price Communication: The WHAT
The structure of what you send out can drastically alter your customers perceptions and response, as well as feed their need for information. Here is how I have seen some customer conversations go when a salesperson delivers an increase letter:
Generic Price Increase Letters
These are the organizational letters that are crafted centrally and delivered through one of the mediums described above. A few best practices that most can agree on:
- Keep it short, succinct, and focus on the facts.
- Tie the source of the increase to an outside force: in this case rising costs due to tariffs. This has the effect of taking focus off of you.
- Indicate the dates and general amounts (ranges are ok here, as products will vary).
- Highlight any additional value or activity you are proactively doing to protect your customer base from increased costs.
- For specific customers, especially those with buying power, consider allowing orders at current prices through the end of the month or other appropriate time frame.
Generic Price Increase Notice
April 10th, 2025
Dear Valued Customer,
We at {organization} would like to take this opportunity to thank you for your continued support and loyalty to our business. We have always prided ourselves on providing you with high-quality products and exceptional service, and we are grateful for your trust in us.
As you are aware, the tariff activity we are experiencing in 2025 has been challenging for many businesses, including ours. We have worked tirelessly to keep our prices as competitive as possible amidst this economic pressure, something that we will continue to do.
While we have done our best over {time period} to keep price increases to our customers at a minimum, we will need to adjust our prices in order to maintain our current standards of quality and service. As a result we will be implement a {percent} price increase on many of our imported goods beginning {start date}. This includes our {description} products. New pricing will be delivered to you starting {communication date}.
If you have any questions or concerns about these price increases, please do not hesitate to contact us. We are always happy to hear from our customers and will do our best to address any issues or feedback you may have. Once again, we want to express our gratitude for your continued support and look forward to serving you in the years to come.
Sincerely,
{Leader}
As you can see, many of the key points we mentioned above are included. It is frank and to the point. It ties the source of the increase to the outside force of rising costs from tariffs. It highlights how you have worked to keep prices competitive over recent times, and also clearly shows the dates of effect.April 10th, 2025
Dear Valued Customer,
We at {organization} would like to take this opportunity to thank you for your continued support and loyalty to our business. We have always prided ourselves on providing you with high-quality products and exceptional service, and we are grateful for your trust in us.
As you are aware, the tariff activity we are experiencing in 2025 has been challenging for many businesses, including ours. We have worked tirelessly to keep our prices as competitive as possible amidst this economic pressure, something that we will continue to do.
While we have done our best over {time period} to keep price increases to our customers at a minimum, we will need to adjust our prices in order to maintain our current standards of quality and service. As a result we will be implement a {percent} price increase on many of our imported goods beginning {start date}. This includes our {description} products. New pricing will be delivered to you starting {communication date}.
If you have any questions or concerns about these price increases, please do not hesitate to contact us. We are always happy to hear from our customers and will do our best to address any issues or feedback you may have. Once again, we want to express our gratitude for your continued support and look forward to serving you in the years to come.
Sincerely,
{Leader}
Detailed Price Increase Letters
These are essentially the same as the increase letters above, but with more specific detail as to the exact amount that the customer can expect to see based on their purchasing behaviors. Replacing the following sentence from above:
"As a result we will be implementing a {general percent} price increase on many of our imported goods beginning {start date}."
With:
"Based on the products you have bought over the last 12 months, we estimate your prices will increase by {exact percent} beginning {start date}."
Here's an example of what a simple detailed price increase notice could look like:
As you can see, many of the key points we mentioned above are included:
"As a result we will be implementing a {general percent} price increase on many of our imported goods beginning {start date}."
With:
"Based on the products you have bought over the last 12 months, we estimate your prices will increase by {exact percent} beginning {start date}."
Here's an example of what a simple detailed price increase notice could look like:
Detailed Price Increase Notice
April 10th, 2025
Customer A,
We hope this letter finds you well. At PriceSmith, we remain committed to providing you with exceptional products and services that support your business goals. We value our partnership, which has included 187 deliveries and 42,350 units purchased over the past year.
As you are aware the tariff activity we are experiencing in 2025 has been challenging for many business, including ours. We have worked tirelessly to keep our price as competitive as possible amidst this economic pressure, something that we will continue to do.
While we have done our best over the last year to keep price increases to our customers at a minimum, we will need to adjust our prices in order to maintain our current standard of quality and service. Based on the products you purchased over the last 12 months, we estimate your prices will increase by 5.2% starting on May 1st, 2025. This includes our core product lines. New pricing is attached to this notice.
If you have any questions or concerns about this price increase, please do not hesitate to contact us. We are always happy to hear from our customers and will do our best to address any issues or feedback you may have. Once again, we want to express our gratitude for your continued support and look forward to serving you in the years to come.
Sincerely,
Josh Smith
COO & Founder @ PriceSmith
April 10th, 2025
Customer A,
We hope this letter finds you well. At PriceSmith, we remain committed to providing you with exceptional products and services that support your business goals. We value our partnership, which has included 187 deliveries and 42,350 units purchased over the past year.
As you are aware the tariff activity we are experiencing in 2025 has been challenging for many business, including ours. We have worked tirelessly to keep our price as competitive as possible amidst this economic pressure, something that we will continue to do.
While we have done our best over the last year to keep price increases to our customers at a minimum, we will need to adjust our prices in order to maintain our current standard of quality and service. Based on the products you purchased over the last 12 months, we estimate your prices will increase by 5.2% starting on May 1st, 2025. This includes our core product lines. New pricing is attached to this notice.
If you have any questions or concerns about this price increase, please do not hesitate to contact us. We are always happy to hear from our customers and will do our best to address any issues or feedback you may have. Once again, we want to express our gratitude for your continued support and look forward to serving you in the years to come.
Sincerely,
Josh Smith
COO & Founder @ PriceSmith
As you can see, many of the key points we mentioned above are included:
- It is frank and to the point.
- It ties the source of the increase to the outside force of rising costs from tariffs.
- It highlights how you have worked to keep prices competitive over recent times.
- It also clearly shows the dates of effect.
Detailed Price Sheets & Data
This is the most specific type of information that you can give a customer, as it is essentially a price sheet with all of their prices. Again, you will have to gauge if publishing this type of information is right for your business.
In some industries, it is the norm and expected. I have seen sales and support teams buckle under the weight of these requests using tools like Excel or even BI solutions like Tableau.
A few points to consider:
In some industries, it is the norm and expected. I have seen sales and support teams buckle under the weight of these requests using tools like Excel or even BI solutions like Tableau.
A few points to consider:
- What products to include: In many industries, there are standard price sheets that are used that can be simply updated with new prices and given out. In other cases, you may want to include only what they have bought over the last 12 months to truncate.
- What prices to show: You can show new prices only, or old and new prices, or old and new prices and the change. What we have seen that is successful is providing information with the new prices only, as customers generally know what they were paying before and can do the mental math if needed.
- Medium to deliver: Printed prices in B2B can be a bit taboo. This is due to the hidden nature of B2B prices, and the fact that there is a belief it can be leveraged with competition to get better prices. Does it happen? Sure. Is it the rule? I don't think so. In any case, if a customer wants prices you are going to give it to them. Normally what we see is a professionally formatted .pdf or a data file that can be used by the customer to load into their systems.
Salesperson: "Hello, John. As you know, tariffs are hitting us all. Here is a letter from HQ giving you some details, such as when it goes into effect."
Customer: "Yeah, this is really causing a stir. So, how much are my prices going up"
Salesperson: "Well, I don't have that type of detail yet. I can probably get it over to you in a few days. But I know it's in the range of 8-15%."
Customer: "I need to know, I have a business to run as well. When can you get it to me?"
In this case, what we see is increasing stakes for information. This is important, as this type of request can put A LOT of stress on sales teams to get the customer information they need. In distribution where often thousands of SKUs exist, salespeople and sales support can turn into price sheet managers really quick. So, as you start to prepare for the price changes, keep these three types of price increase letters in mind:
- Generic Price Increase Letters
- Detailed Increase Letter (Customer Specific)
- Detailed Price Sheets
Be Prepared and Take Advantage of the Opportunity
In my experience, pricing is an emotional topic: for leadership, for salespeople, and for customers. Price increases can really take it to another level, because there are real business implications for everyone involved.
Having a good strategy for how you deliver the price increase news will ensure the best possible results. But don't stop there.
Build your capabilities to handle the other scenarios (detailed price letters or detailed price sheets) that are surely going to come your way.
While not all of your customers will need to go that deep, it is a certainty your most important ones will want and appreciate the information in a professional and timely fashion. This proactive approach will not only ensure compliance but also strengthen customer relationships and position your business for success in what is surely going to be a wild ride in 2025.
Frequently Asked Questions
How far in advance should we communicate price changes?
For significant price changes, communicate 30-90 days in advance. For routine adjustments, 2-4 weeks notice is typically sufficient. Always consider your customer's planning cycles and contract terms.
What's the best way to handle customer objections to price increases?
Focus on value delivered, provide clear justification, offer alternatives where possible, and ensure your sales team has the tools and authority to address concerns effectively. Consider phased implementations for major changes.
How can we measure the effectiveness of our price communication?
Track customer retention rates, sales team feedback, customer satisfaction scores, revenue impact of price changes, and time-to-acceptance of new pricing structures. Regular surveys and feedback collection are also valuable.
Should we communicate price changes differently for different customer segments?
Yes, different customer segments require different approaches. High-value customers may need personalized outreach, while smaller accounts might receive standardized communications. Consider relationship depth, volume, and strategic importance.
What role does technology play in price communication?
Technology enables automated notifications, customer self-service portals, consistent messaging across channels, and analytics to track effectiveness. Modern pricing platforms can streamline the entire communication process.
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