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DIRI AI

Price

How to respond to “Last year it cost less. Why the increase”

Customers say “Last year it cost less. Why the increase” for a reason. Here is what usually sits behind it, how to respond and what to avoid.

What is really behind it

The customer feels penalised for staying and suspects you are betting on inertia. They may also be using the increase to negotiate. Silence, vague reasons or a lecture about costs make it worse; a clear, honest explanation and a real choice help most.

Typical in: Software and SaaS, Insurance and finance, Telecom and energy

How to respond

Pick the framework that fits the customer. The wording is an example direction, not a script: say it in your own words.

Acknowledge, then ask

Show you heard it, then ask an open question before you respond.

“You are right, it has gone up, and I understand that is not welcome. Let me explain what has changed, and then we will look at your options, so you can decide what is worth it.” Then give the real reasons, briefly.

Offer a choice

Give two real options so the customer decides how, not whether.

“There are a few ways forward: keep what you have at the new price, adjust the scope to bring it closer to last year, or review whether you still need all of it. Shall we look at which fits best?”

Reframe around the outcome

Move from the objection to the result the customer said they want.

“Let’s check what you actually used this year. If you used less than you pay for, we can fix that. If you used all of it and more, the increase is buying you something you rely on.”

The follow-up question

After your response, ask:

What would a fair price look like to you, given how much you use it?

What not to say

Avoid: Everyone’s prices went up this year.

It treats a personal frustration as a general fact. The customer wants an explanation about their own contract.

Practise it out loud

Reading is not the same as saying it. Talk to an AI customer who raises this kind of objection and see in the report which sentence helped.

Practise this objection

Questions about this objection

What does “Last year it cost less. Why the increase” really mean?

The customer feels penalised for staying and suspects you are betting on inertia. They may also be using the increase to negotiate. Silence, vague reasons or a lecture about costs make it worse; a clear, honest explanation and a real choice help most.

How do you respond to “Last year it cost less. Why the increase”?

Acknowledge, then ask: “You are right, it has gone up, and I understand that is not welcome. Let me explain what has changed, and then we will look at your options, so you can decide what is worth it.” Then give the real reasons, briefly. Offer a choice: “There are a few ways forward: keep what you have at the new price, adjust the scope to bring it closer to last year, or review whether you still need all of it. Shall we look at which fits best?” Reframe around the outcome: “Let’s check what you actually used this year. If you used less than you pay for, we can fix that. If you used all of it and more, the increase is buying you something you rely on.”

What should you ask after “Last year it cost less. Why the increase”?

What would a fair price look like to you, given how much you use it?

What should you not say when a customer says “Last year it cost less. Why the increase”?

Avoid “Everyone’s prices went up this year.” It treats a personal frustration as a general fact. The customer wants an explanation about their own contract.

Educational conversation training. It is not legal or financial advice and it promises no results. Always follow your company’s rules, the terms of the product and a customer’s clear no.