What to do when your price is going up--eight guidelines.

Handling the price increase is a problem that every newsletter marketer deals with and one that in many cases should be faced sooner rather than later.

Overall, business publishers tend to be aggressive with price strategy. The late David Swit at Washington Business Information used to say, "My subscribers are business people; they are used to the price of everything they buy going up every year. No one who bought one of our titles at $447 this year is not going to renew because next year's price is $467 or $477."

Consumer publishers, on the other hand, are often skittish about increases. I know one who took 20 years (and a format change) to get from $35 to $45.

When the time comes, you have two options.

1. The "Inflation Fighter Beat the Price Increase" Advance Renewal Campaign (more about this later), or

2. The Nike Approach (Just Do It!).

If you aren't going to offer an advance renewal opportunity, just go ahead with the price increase. You can send a letter with the renewal series if you wish, but those are tough to write.

It's nice if you can think of some "added value" you will be providing--periodic special reports or additional international coverage, for example--but avoid the inference that what you have done up till now is crappy.

And, especially, avoid the explanation that paper, printing and postage prices are going up. It's true, but times are tough all over. Your subscribers have their own problems and don't want to hear about yours.

The other alternative is to announce the price increase by offering an advance renewal opportunity.

For those subscribers who accept the offer, it delays the increase a year. And for yourself, it's an excellent cash-flow shot in the arm--what Bill Donoghue used to call the Advance Renewal National Bank.

Eight guidelines to follow

A letter should accompany the early renewal announcement and it should contain the following points.

* The price is definitely going up. Give the date and the amount of the increase.

* Emphasize that "Your Subscription Price Will Never Be Lower Than This."

* If you are raising the price simultaneously for new subs, "Renew Now and Pay Less Than New Subscribers Pay" is always effective.

Or, "Only Our Current Subscribers Are Being Offered the Opportunity to Renew at the Current Low Rate and Save."

* State a specific deadline.

* State the savings in dollar amounts or percentages (or both) to emphasize what the subscriber will be saving.

* Include specific instructions on how to order. When we once found subscribers just checking "Yes" and returning the card, we added copy specifying, "Return this card with your check or credit card instructions."

* Mention editorial features or special reports that will be coming out during the extended subscription term. Copywriter Ed McLean says. "I know, the subscriber would probably be getting those in any event, but we're not dealing with an entirely rational process here."

* And don't forget to offer the opportunity to "Double Your Savings by Extending Your Savings for Two Years."

If you are willing to accept these renewals on an unpaid basis, you can increase response rates, but most smaller operations don't want the administrative hassle of sending both the advance renewal opportunity mailing and the follow-up invoices.

Finally, you will receive orders after the deadline date. What do you do about those?

Put the check in the bank.

If it bothers you, pro-rate the order as a 10-month or 11-month renewal and enter it into your fulfillment system that way.