Well, customers hate too many choices. You would think the opposite would be true, but it isn't. In fact, according to various financial data- customers find too many choices overwhelming and end up not buying anything. My advice, if you're going to raise rates- do so without offering several contract terms or price points.
Provide a deal. If you have to raise your rates make it worth your customer's investment. For example, if you have a product or service that sells for $200, and you're going to raise rates to $250, try selling three of the same item for $700. This tactic has worked for decades.
Finally, be honest. If your customer threatens to walk because of a price hike- let them go. Otherwise, you will have an angry and cynical customer to deal with. Instead, find someone who is willing to appreciate your product or services- at the higher price point- and move on.
Until next time,