How to tell customers that we are raising prices?

3 min read

Despite wage growth and slowing inflation, consumer confidence remains low, and the input costs of many products have risen sharply this year. Furthermore, a VAT increase looms this summer, affecting the prices of nearly all goods and services. How can businesses communicate an upcoming price increase to their customers in such a situation? The fear that customers might leave after receiving bad news is real. It may also attract media attention and cause reputational damage to the company. Therefore, price changes must be communicated thoughtfully, honestly, and convincingly. Success requires good preparation and a well-considered approach.

Analyze your client’s situation

A well-worded mass email might suffice if the economy is strong and enough time has passed since the last price increase. However, early planning is crucial in the current climate, where consumers are saturated with negative news and emotionally strained. Price change communication should be taken as seriously as a new product campaign.

Start by analyzing the market situation: What is your customers’ current state? Do they primarily seek discounted products or look for cheaper alternatives? How have they reacted to competitors’ price increases? Has this influenced their purchasing behaviour? This groundwork helps justify the price increase and determine the most appropriate communication strategy.

Start communication early

Price increase messaging should begin early and be reflected in other corporate messages. Companies often prefer to highlight positive numbers when presenting economic results, focusing on growth. However, if a price increase is imminent, it’s wise to stop sugar-coating. A sudden price hike can feel contradictory and frustrating if customers constantly hear that the business is thriving.

“Research shows that customers are most irritated when they feel price increases are driven solely by profit motives. That’s why justifications must be clear and easy to understand.”

It’s also beneficial to hint early that price adjustments may become necessary. Speaking honestly about rising costs and the impact of inflation ensures the price increase won’t come as a surprise. Larger companies should raise industry-wide issues before implementing price hikes—especially if the challenges affect the whole sector. Research shows that customers are most irritated when they feel price increases are driven solely by profit motives. That’s why justifications must be clear and easy to understand. Transparency and proactive communication help reinforce that customers have chosen a trustworthy partner.

Messages must be clear and human

Clarity and transparency are essential when explaining price changes. Customers shouldn’t have to calculate or search for the new price themselves. Vague or overly generic statements can lead to frustration and a loss of trust. The reasons must be specific—”rising costs” says little, but pointing out increases in raw materials, supply chains, or energy makes the message more relatable.

For example, avoid saying: “Due to general cost increases, we adjust our prices. The updated price list is available on our website.”

Instead, say: “Our production costs, especially for raw materials and transportation, have risen significantly over the past year. For instance, our costs increased by 20% in Q1 compared to last year’s period. To maintain high product quality and continue investing in customer service, we need to adjust our prices starting next month by 10%. As a result, a product currently priced at €10 will cost €11 as of next month.” You can emphasize your continued competitive advantage to soften the message: “We continue to offer the most affordable price in the market” or “the best quality.”

What does the customer get in return?

“A well-crafted value proposition helps customers understand why the increase could benefit them.”

A price increase doesn’t just mean higher costs for the customer—it also signifies an investment in quality. A well-crafted value proposition helps customers understand why the increase could benefit them. However, this works only if the added value is something the customers genuinely want and have mentioned in feedback or surveys.

In such cases, emphasize the customer-centric approach in your communication. If people feel heard and understand that improvements require extra cost, they are more likely to accept the change. Still, don’t justify a price hike with added features that the customer neither requested nor valued.

In conclusion: Be honest and open

Avoid negative language or apologetic/defensive phrasing.
Emphasize what the customer gains, not just that prices are increasing.
Provide early notice about rising costs to give customers time to adapt.
When price increases are communicated clearly, with solid reasoning and customer value in mind, it’s possible to avoid backlash and maintain a relationship of trust.
Be present for the customer—include contact details or a link to more information in every communication. Prepare for a spike in customer inquiries and ensure your team is ready.
Also, ensure your spokespeople can respond to media inquiries or give interviews. This signals that the company is not hiding anything and helps shape the narrative while supporting the change with well-crafted messages.

The European Commission’s First 100 Days: Focus on Defence and Industry

2 min read

As is customary when new governments take office, the European Commission’s work is assessed after its first 100 days. This period has been largely shaped by geopolitical developments, bringing defence policy and industrial strategy to the forefront of the EU’s agenda.

“On March 6, during an extraordinary European Council summit, EU leaders adopted the ReArm Europe initiative.”

Defence: Decisive Steps Towards Strategic Autonomy

On March 6, during an extraordinary European Council summit, EU leaders adopted the ReArm Europe initiative. It’s a major plan to enhance Europe’s defence capabilities and move towards a more sovereign European defence policy.

The initiative aims to mobilize up to €800 billion over the next four years through four key measures:

Fiscal flexibility for increased defence spending – EU leaders agreed to activate the Stability and Growth Pact’s national escape clause, allowing member states to increase defence budgets without triggering an excessive deficit procedure. If countries increase their defence spending by 1.5% of GDP on average, it could create an additional €650 billion in fiscal space over four years.

150 billion EUR defence loan programme – EU leaders also approved a 150 billion EUR loan scheme, where the Commission will raise funds and distribute them as loans to member states to finance purchases of artillery, missiles, ammunition, drones, and anti-drone systems. This funding will also enable member states to increase direct military aid to Ukraine.

Redirecting EU budget towards defence – The Commission announced new incentives for member states to use cohesion policy funds for defence, allowing governments to reallocate existing EU resources to security investments.

Involvement of private capital – The European Investment Bank (EIB) will expand its mandate to support private sector investments in the defence industry, facilitating additional funding through European banks.

In addition, the long-awaited White Paper on the Future of European Defence is set to be published in the coming weeks. Presented by EU foreign policy chief Kaja Kallas and Defence Commissioner Andrius Kubilius, the White Paper will assess Europe’s military readiness for potential conflicts and propose mechanisms for joint procurement and NATO deterrence strategies. Kubilius has also stressed the need for joint ammunition stockpiling to strengthen Europe’s defence industry and reduce dependency on third countries.

In a further step towards strengthening Europe’s security, European Commission President Ursula von der Leyen announced the creation of a “Security College”. The initiative will ensure that European commissioners receive frequent security briefings, including intelligence reports on emerging threats such as cyberattacks, hybrid warfare, and geopolitical risks.

Industrial Policy: The Clean Industrial Deal and Reducing Bureaucracy

Alongside its ambitious defence agenda, the European Commission has introduced the Clean Industrial Deal, a 100 billion EUR strategy designed to help traditional industries reduce their carbon footprint while fostering a competitive clean-tech sector. The deal includes a 50 billion EUR Industrial Decarbonization Bank to support innovation and the transition to climate-neutral production. It also features a joint procurement of critical raw materials, such as lithium and cobalt, to reduce Europe’s dependency on external suppliers and secure industrial competitiveness. Industry representatives have praised the initiative as a historic shift in EU policy, balancing economic growth and climate goals. However, environmental organizations have criticized it, arguing that it weakens EU climate objectives and makes concessions to energy-intensive industries and polluters.

The Commission’s Omnibus Simplification Package, another key element of its industrial policy, has further divided opinions. Designed to cut administrative burdens and reduce green reporting obligations for businesses, it exempts 80% of companies from sustainability reporting. While businesses welcomed the move as essential relief, sustainability advocates condemned it as a step that weakens corporate accountability.

“The first 100 days of the European Commission have undoubtedly set the stage for long-term political struggles.”

The first 100 days of the European Commission have undoubtedly set the stage for long-term political struggles. With an €800 billion defence investment, relaxed fiscal rules and plans for joint procurement, the EU is making a move towards strategic autonomy, but more flexible fiscal policies could raise questions about the sustainability of European economic policy.

The crucial months ahead will see whether the EU can take decisive action after the turmoil and balance security concerns, the competitiveness of its own economy and continued support for Ukraine.

How do you choose a PR agency that supports your business?

3 min read

Over the past 10 years, I have witnessed hundreds of different procurements and sales meetings from the sidelines, somewhere companies have been able to engage a strategic partner to support business success, others where they have recruited a handyman whose real value remains questionable. The difference between the first and the second outcome is always created by one overarching trait: how the process of engaging an agency is thought through and expectations are fixed.

Choosing a PR agency is more than finding someone to write press releases or send talking points to journalists. It’s about a long-term strategic partner who needs to be able to understand your business objectives, both long and short-term, and support them with their day-to-day activities. But how do you get to the kind of agency that will deliver results?

Map your marketing & PR needs

It should start with objectives. Before sitting down at the table with any agency, it is worth asking yourself two critical questions: “What results do I want to achieve by working with a PR agency?“ and “What does success look like for me?”. These are seemingly simple questions, but finding the correct answers can often be the difference between a company backed by an agency that will make a difference and someone just doing something to get something done.

Once the initial objectives are clear and the bigger vision is in place, it’s also worth considering what type of PR firm can help achieve the goals.

Map the market

The bigger the market, the more choices. The Estonian PR market is relatively small, but some agencies can offer diverse services.

There are those primarily known for their strong strategic approach and those more focused on traditional media relations or digital marketing. By understanding your needs, you can choose someone who can deliver what you really need.

The team’s size is also crucial in making the right choice. While an agency doesn’t need to have 10, 20 or 30 people, the size of the team is a key indicator of the range of skills and experience that will contribute to success. It is worth looking at companies’ websites to see if anyone has experience in a similar sector to your business and case studies of successful projects.

“It is worth understanding that PR is not universal. Strategies that work for a B2C-oriented retail brand may not work for a B2B-oriented technology company.”

It is worth understanding that PR is not universal. Strategies that work for a B2C-oriented retail brand may not work for a B2B-oriented technology company. Just as PR itself is not universal, neither are agencies. That’s why it’s important to find potential partners who understand the challenges and trends in your business sector and who have a network of journalists covering that sector.

Test the competence & ask for references

Once you’ve found agencies that, at least as described, could help your business meet its strategic objectives, it’s time to move on to the next step and start validating potential partners. To get a good overview of the agencies, send them an introductory email and see if they would be interested in bidding. Then, give your potential partners the same task and see how they do.

The latter could coincide with your strategic business objectives and test the capabilities you need from the agency daily. Be sure to also ask for references, as similar experience is generally the best teacher. During the validation phase, getting real insight into the team’s competencies and capabilities is essential.

As a company, sending experienced partners or team leaders to a sales meeting is of little use, but your own day-to-day partner will be an inexperienced young person who is still learning. It is important to include a clause in the initial invitation to tender that the same team that will later advise the company will be represented at the sales meeting.

Meet in person

As good as no offer is, the chemistry between the agency and the company must always be an essential consideration in the final selection. A good way to test the fit at a human level is to invite agencies one by one to submit a given assignment and, in the process, ensure that a good fit exists. Since the agency should ideally become part of your team, it is obvious that this team will perform much better if all its members share similar perceptions, values and attitudes.

“Agencies today no longer do “PR”. They help you position your business in the market, anticipate risks and support sales.”

In 2025, a PR agency should be more than just a hand-holding device for a communications manager. Agencies today no longer do “PR”. They help you position your business in the market, anticipate risks and support sales. So make wise choices and spend more rather than less time choosing an agency, because onboarding is inevitably a costly exercise.

How to Get Media Coverage for the Work of Community-Oriented Institutions?

5 min read

How do you get media coverage or raise public debates about the work and activities of community-based institutions that do their day-to-day work well? Clearly, you cannot get into the media simply by doing a conscientiously good job. But what will?

Take the library, for example. It’s much more than just a place to borrow books. Libraries have become cultural and educational hubs for the community, bringing together young and old with various interests and hobbies. Having trained several library staff in communication and media skills, I can confidently assert their dedication to their societal role, which they fulfill with enthusiasm and commitment.

However, no institution is immune from budget cuts when the economy takes a downturn, and local governments must make tough decisions. This is where communication about the institution’s work can become an essential strategic tool for explaining the relevance and impact of your institution’s work to society.

But should a highly valued library in its community make any extra effort to be in the broader media picture? The answer is yes. But does a library get media coverage for doing what it was created to do? The answer is no. So, how can we shed light on the important topics, challenges, and successes within libraries or similar institutions—stories that also reflect the broader dynamics of our society?

Take on the Role of Spokesperson

Although libraries may be popular among their residents, this alone is not enough to build a positive public image. Broader recognition, active participation in public discussions, and expressing opinions are essential. Various smaller mission-driven institutions through the media can affirm their indispensable role in education, culture, and community development. The more people know how and what role a specific institution, such as a library, plays in societal life, the harder it becomes to justify cutting their budgets.

How to Get Media Coverage?

Every day and every week, interesting and well-organized events take place in every corner of Estonia, and libraries are no exception. However, many NGOs and other community-driven institutions have likely felt that, despite their events being well-received by the local population, they fail to capture the interest of local media, let alone national outlets.

The answer to the question of media access lies in how you package the information you have. There is a big difference between simply inviting a journalist to an event and including newsworthy information and data. The additional information and data can help to open up the whole picture and turn an event into a reason to cover something more significant and broader. For example, a day of reading in the library, together with statistics, could be an opportunity to talk about reading among Estonian children, reading difficulties, reading habits, or even more popular children’s books or book preferences.

What Could be the Added Value?

Let’s imagine that a library organizes a discussion group or a conference to celebrate the anniversary of the birth of a famous writer. While such an event naturally draws a large audience, the media doesn’t cover discussions or conferences without additional context or relevance.

What Would Capture the Media’s Interest?

Highlight facts and statistics about the author: how many books they’ve published, how often their works are borrowed, which titles are most popular, and how these numbers have changed.

Or, if it’s about an event related to education and the study of Estonian language and literature, in addition to information about the event, you should include a relevant survey or some fascinating statistics about literature teachers, books read at school, etc.

Is an Event Always Necessary to Spark Interest?

No, the public—and therefore the media—can be engaged at any time with interesting and, most importantly, updated data. This is why it’s worth keeping an eye on trends and statistics related to the institution and its field.