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When you must raise prices to your customer, give him an options at the same time you announce the price increase. To give him a price break, offer early payment discount that brings his price back close to that prior to his price increase. He may or may not want to pay your firm early for your invoices (i.e. net 10 versus net 60 days) but you are giving him the possibility of a price cut in exchange for paying you more quickly.
Your benefit from his paying you earlier taking the discount offered is that you are less likely to borrow on your line of credit for the extra 50 days (discount offered/ net 10 versus no discount/ net 60 days) in order to pay bills.
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