How to Write a Price Increase Letter + Examples

price increase letter

Price increase letters are essential in today’s inflation-affected global economies. While inevitable, price hikes aren’t always well-received by customers, potentially affecting their purchasing choices. The challenge for businesses is implementing these hikes without losing their clientele.

By crafting a well-thought-out price increase letter, businesses can convey the reasons behind the decision and express gratitude for the continued loyalty of their customers, making the transition smoother for all parties involved.

How to Write a Price Increase Letter to Customers

Navigating the delicate matter of raising prices necessitates a balance of transparency, empathy, and professionalism. While it’s inevitable for businesses to adjust their prices over time due to various factors, communicating this to loyal customers can be a sensitive task.

An effective price increase letter can be an invaluable tool in this process. When crafting this communication, here’s a systematic approach to ensure clarity and maintain trust:

Step 1: Notify Team Members

Before any external communication is dispatched, it’s paramount to keep your internal team in the loop.

When you decide on a price adjustment, every team member—from the sales representatives and digital marketing professionals to the dedicated customer support staff—should be advised of the change.

An informed staff not only bolsters company-wide cohesion but also ensures that they’re well-prepared to address and navigate any customer inquiries or concerns that arise as a result of the price increase.

Step 2: Contact Customers Personally

In the age of digital automation, personalized communication stands out and is often appreciated. When it comes to sensitive matters like price hikes, a direct, personal approach can make all the difference.

Reaching out to each customer personally, whether through a letter, email, or phone call, reinforces their value to your business. Address them by name, succinctly explain the rationale behind the price change, and express gratitude for their continued patronage.

A carefully drafted price increase letter can convey the necessary information while emphasizing your commitment to quality and service, thus preserving and even strengthening the customer relationship.

price increase letter

Step 3: Give Ample Notice

Announcing a price change isn’t something to spring on customers out of the blue. It’s essential to respect their planning and financial processes by providing sufficient lead time.

This proactive approach allows them the flexibility to accommodate the revised pricing in their future budgeting or even explore alternative solutions if needed.

For subscription-based services, for instance, a lead time of at least two months prior to the new pricing taking effect is seen as considerate and industry-standard, though the exact time frame can vary based on the nature of your business and its contractual obligations.

Step 4: Get to the Point

Clear, straightforward communication is key. In your correspondence, aim for clarity over cleverness. Open by addressing the primary purpose of your letter – the impending price adjustment.

Detail the reasons for the change, whether it’s due to increased manufacturing costs, adjustments in the market, or any other pertinent factors. Transparency can help in fostering understanding; customers appreciate honesty, even when the news isn’t particularly favorable.

Step 5: Express Appreciation

Every customer wants to feel valued, especially during times of change that might affect their pocketbook. Make a conscious effort to convey gratitude for their continued business and loyalty.

Highlight the mutual journey, acknowledging that your growth and success have been intertwined with their support.

A sincere thank you, coupled with a genuine acknowledgment of their role in your company’s journey, can go a long way in reinforcing the bond and reminding them of the shared history and future aspirations.

Step 6: Emphasize Value

Adjusting prices doesn’t just impact the customer’s wallet; it can also influence their perception of your brand. To ensure continued trust, underline the exceptional quality and value of the products or services they’ve come to expect from your business.

Stress that these changes are integral to upholding and potentially elevating that standard. A price hike is easier to digest when it’s paired with the assurance that the value proposition remains consistent or even improves.

price increase letter

Step 7: Announce News

Counterbalancing the potentially unwelcome news of a price increase with something exciting can create a more balanced narrative. Have you made innovations in your product line? Are you rolling out enhanced service features or embarking on a new green initiative?

By juxtaposing the price adjustment with promising updates or developments, you can pivot the conversation from mere cost to the enhanced benefits or value customers can expect.

Step 8: Offer a Timeline

Clarity is crucial during transitions. Providing a clear timeline for the price change not only assists customers in their financial planning but also exemplifies respect and transparency.

A delineated schedule, whether through a calendar date or a specific billing cycle, ensures customers aren’t left wondering or, worse, feeling deceived when they see a change in their charges.

Step 9: Accept Feedback and Provide Support

Change can evoke a spectrum of responses. While some customers may understand the necessity of a price adjustment, others might be more vocal in their discontent. Embrace a posture of receptivity, demonstrating a genuine willingness to hear and address concerns.

Although you’re not actively soliciting feedback, offering channels—whether an email address, a dedicated phone line, or an online form—for those who wish to communicate can be invaluable.

Ensure that your team is prepared to handle inquiries with empathy and professionalism, reinforcing the message that every customer’s voice matters.

price increase letter

Price Increase Notice Sample

Looking for a price increase letter template to help you craft your own? Be direct about the upcoming increased costs, and customize the following example to request your customers’ continued support.

Dear [Customer Name],

Thank you for your continued support of [Business Name]. Due to global inflation and unforeseen shipping and raw materials costs, our business will be making a small price adjustment to [Produce or Service] by [$Amount]. The price increase will take effect on [Date].

We understand the effect price increases can have on our customers, and so this was a difficult decision to make. We promise to continue delivering the highest quality products and services to our valued customers, and we thank you for your understanding and continued support during this change. Please contact us at [Phone Number/Email] with any questions, comments or concerns.


[Company Name]

More Examples of Price Increase Letters

You don’t have to use our price increase letter example to notify your customers of higher prices. Plenty of other examples of price increase letter templates are available with key points that will help customers understand the new price.

Template If You Plan to Raise Prices

Dripify offers this great price increase letter example for how to gently inform customers to expect a higher cost while detailing the new pricing plans.

Dear XYZ,

We’re on a mission to be the most affordable and accessible SaaS company for your business. But several market factors, including the raised server expenses and currency exchange rates, pushed us to take a step.

The never-ending wave of inflation has hit us, too, forcing us to raise our prices. We’ve tried to delay this hike for many months, but it’s time.

We’ll be increasing our service charges from $18.99 to $20.99 per month from January 2022.

But the good news is, you’ll get one-month extended services at the current price because you’ve been with us for a while now. You’ll receive another notification when the new price is effective. Till then, use our service to hit your milestones; you got this.

We appreciate your trust in us, and we’ll always keep up with our standards. If you have a question, contact our help center or call us at [Phone number/Email], we’re always there to help.

Mike Trevor

price increase letter

Direct Price Increase Notice Example

Another effective price increase letter template is one offered by Gosite, which reminds customers of the company’s service performance and offers a special deal.

Dear NAME,

Thank you for your continued support. We are grateful for your business.

The market is ever-changing, and these changes have caused price increases in materials, staff, and maintaining the high quality we provide our customers. 

So we can continue to deliver our services at the highest level of quality to you, we will be updating our prices.

Effective DATE, we will be implementing a price adjustment of CUSTOM. You will receive an updated invoice shortly that will reflect your price increase.

We value your business and look forward to your continued support. We are committed to continually bring our outstanding services to you, and believe this price increase will allow us to improve our services even more.

Please feel free to reach out to us if you have any questions.



Price Increase Letter Template with a Focus on Service

In this price increase notification template, Content Snare shows how to reach out to a customer base about a new price while reinforcing superior services offered.

Dear [Customer Name],

I’m writing to let you know that our prices will be increasing by 3% with effect from 1st April. For you, this will mean an increase from $800pcm to $824pcm starting with your April invoice. 

As you know, we value your business and have enjoyed working with you and achieved some great results along the way. Like any business though, our own operating costs do increase over time.

To maintain the level of service you’re accustomed to, this modest increase is necessary, so we wanted to communicate this to you in good time. We’re confident that our prices remain competitive within our sector for the quality of the service that we provide and as always, we’re focused on the results we provide to clients.

I’d like to remind you of the service we provide to you on a monthly basis, which includes:

  • Service 1
  • Service 2
  • Service 3

Thanks again for your business, and please contact me if you have any questions about your new prices.

Yours Sincerely,

[Business Name]

price increase letter

Price Increase Announcement Tips

Navigating the complexities of a price hike can be daunting. While the inherent risk of alienating loyal patrons lingers, for many businesses, this move can be pivotal for sustainability and growth.

To strike a balance between fiscal prudence and maintaining goodwill, it’s pivotal to approach the situation with tact and transparency. Let’s delve into some key strategies that can smooth this transition for everyone involved.

Include Justification

Transparency is paramount. While customers may not revel in the idea of paying more, understanding the underlying reasons can make the change more palatable.

Whether it’s due to rising raw material costs, enhanced features, or inflationary pressures, elucidate the reasons clearly.

This candid approach can foster trust and help your audience grasp that the price adjustment isn’t arbitrary but rather a calculated move aligned with industry shifts or business necessities.

  • Inflation and economic changes.
  • Increased operating costs.
  • Enhancements in product or service quality.
  • Expansion or business growth.

Be Informative Yet Brief

Crafting a succinct yet comprehensive message is key. Strive for clarity over verbosity. The objective is to provide the crux of the change, ensuring customers are well-informed without overwhelming them with excessive details.

price increase letter

Provide FAQs

A proactive stance can preempt many common queries. Anticipate potential questions or concerns your customers might harbor, and offer a dedicated FAQ section, ideally on your website.

By addressing concerns like potential subscription changes, feature enhancements, or even the rationale behind the price change, you’re extending an olive branch of transparency and support.

Be Firm and Authoritative

Maintaining a poised and professional demeanor in your communication reinforces the gravity and thought behind the decision.

While empathy can humanize the message, steer clear of excessive apologies. It’s essential to exude confidence, subtly indicating that this step, albeit tough, is in the interest of continued quality and service.

Limit Price Increases to Once Per Year

Consistency in pricing fosters a sense of stability, and frequent fluctuations can be disconcerting for patrons. Therefore, when contemplating an increase, assess the long-term implications and strategize in a manner that curtails the need for multiple revisions within a short span.

By anchoring your price points with an eye on the foreseeable future, you signal reliability and forward-thinking to your clientele.

Benefits of Communicating a Price Increase

  • Maintains trust with loyal customers.
  • Keeps employees informed and prepared.
  • Offers transparency about changes.
  • Provides customers with ample time to adjust.

price increase letter Price Increase Letter Do’s and Don’ts

When navigating the sensitive topic of price increases, it’s essential to approach the situation with tact and transparency. This comparison table outlines the recommended practices and pitfalls to avoid, ensuring a smooth transition for both your business and its valued customers.

Notify team members first.Ignore or avoid informing internal staff.
Address each customer personally by name.Use a generic, impersonal approach.
Provide ample notice.Spring the price increase as a sudden surprise.
Clearly state reasons for the price increase.Use vague language or beat around the bush.
Emphasize the value you've provided and will continue.Focus only on the price change without context.
Announce positive news along with the price increase.Only provide negative information.
Offer a clear timeline for the increase.Leave customers guessing when the changes will take place.

What’s another way to say price increase?

Looking for a gentler way to say, “price increase?” Or maybe you just need to avoid repetitive language in your price increase notice. Either way, there are other phrases you can use to communicate a price increase, including:

  • Inflation
  • Price hike
  • Rising costs
  • Price boost
  • Price raise

How do you introduce a price increase?

If you have to increase your prices, it’s vital that you inform your customer base in advance to retain its loyalty. This can be done in a variety of ways, ranging from a website announcement to a personal price increase letter or email.

Some businesses might simply post a notice at their establishment, but this less personal contact will have a more negative impact on customer relationships.


Image: Envato Elements

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Samantha Lile Samantha Lile is a staff writer for Small Business Trends and has been a member of the team for 3 years. She is also a freelance writer and journalist who contributes to a variety of web publications from her home office in the heart of the Ozarks.