How to write a price increase letter + examples

With inflation affecting economies around the world, price increases are practically inevitable, but that doesn’t mean customers welcome the change in price. Even if consumers understand the price increase, it can still affect their purchasing decisions. How do companies raise prices without sacrificing customer retention?

You can soften the blow and help ease the mind of your existing customers by offering a professional letter of price increases, explaining the decision, and thanking them for their continued business.

How do you write a price increase letter to customers?

Raising prices can be an unpleasant experience for customers, staff and small business owners alike. Writing a price increase letter to customers can help ease tensions, but what process do you follow and how do you write the price increase letter? The following steps can ensure that you write an effective price increase letter to notify your loyal customers.

Step 1: Notify team members

Increasing the current price will affect your entire team, so make sure you let everyone know from salespeople and digital marketing to the customer service team and support staff. You don’t want your employees to be notified when customer feedback about impending price increases starts to come in.

Step 2: Contact customers personally

Don’t let your loyal customers learn your plan to raise prices from anyone other than you. Contact customers directly to explain the upcoming price hike and ensure that messages are addressed personally by name to each individual customer. A price increase letter is a good way to notify customers while maintaining customer satisfaction.

Step 3: Give a wide notice

Give customers plenty of time to adjust to your news of a price increase. In some cases, they may need to reassess their own budget to continue patronizing your business. In other cases, some customers may choose to discontinue the more expensive service, and it is polite to give them ample opportunity to do so. For example, two months’ notice for a change in the subscription price is considered a best practice.

Step 4: Get to the point

Don’t beat around the bush when composing your price increase email or letter. State in advance that you’ve had higher operating costs (or whatever the reason for the increase), and these rising costs will force you to raise your prices.

Step 5: express appreciation

To avoid losing customers, you need to be confident and express your appreciation for your customers and show their value to your brand. Remind your customers that they are the reason for your business growth and express greater value by recognizing their contributions to your success.

Step 6: Emphasize Value

You don’t want to lose customers with the new pricing, so be sure and highlight the excellent products and services your company has provided them in the past. Reassure your customers that in order to continue to provide the same level of excellent service, the price changes are unfortunately necessary.

Step 7: Announce news

Follow up on the disappointing news of a price increase with exciting and welcome news and announcements. Is your company launching a new product or service? Will it include new features to accommodate the price increase? Knowing that you’re offering even more value can help allay frustration with new prices and turn negative news into positive.

Step 8: Offer a timeline

Your customers don’t want to be caught off guard by a price increase. Make sure your customers know exactly when to expect the actual price increase on their accounts. No one likes the bad news of a service price increase on their bill, but it’s worse to be surprised by it.

Step 9: Accept Feedback and Provide Support

Your markup may not be popular, but it’s important to be open to customer feedback. A few customers may want to reach out and voice their concerns, and accepting these communications helps these customers feel valued. Make sure your rate increase email or rate increase letter gives your customers a method to share their thoughts, further questions, or concerns. Avoid including a call to action as you don’t want to start a flood of complaints, but provide contact details for those who are looking.

Price Increase Notification Example:

Looking for a price increase letter template that you can use to create your own? Be upfront about the upcoming increased costs and modify the following example to request continued support from your customers.

Best [Customer Name]†

Thank you for your continued support to [Business Name]† Due to global inflation and unforeseen shipping and raw material costs, our company will make a small price adjustment to: [Produce or Service] by means of [$Amount]† The price increase takes effect on: [Date]†

We understand the effect price increases can have on our customers, so this was a tough decision to make. We promise to continue to provide 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 questions, comments or concerns.


[Company Name]

More examples of price increase letters

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

Template if you plan to increase prices

Dripify offers this great example of a price increase letter to gently inform customers that they expect higher costs while detailing the new pricing plans.

Dear XYZ,

Our mission is to be the most affordable and accessible SaaS company for your business. But several market factors, including increased server costs and exchange rates, prompted us to take a step.

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

Beginning in January 2022, we will increase our service charge from $18.99 to $20.99 per month.

But the good news is that you get a month of extended services at the current price because you’ve been with us for a while. You will be notified again when the new price is in effect. Until then, use our service to reach your milestones; you have this.

We value your trust in us and we will always live up to our standards. If you have any questions, please contact our help center or call us at: [Phone number/Email]we are always here to help.

Mike Trevor

Instant Price Increase Notification 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 constantly changing and these changes have led to price increases in materials, personnel and maintaining the high quality we provide to our customers.

In order to continue to provide you with our services at the highest quality level, we adjust our prices.

As of DATE we will implement a price adjustment of CUSTOMIZED. You will receive an updated invoice shortly reflecting your price increase.

We value your business and look forward to your continued support. We are committed to continuously providing you with our excellent services and are confident that this price increase will allow us to improve our services even further.

Feel free to contact us if you have any questions.



Price increase letter template with focus on service

In this price increase notification template, Content Snare demonstrates how to reach a customer base about a new price while enhancing the superior services offered.

Best [Customer Name]†

I am writing to let you know that our prices will increase by 3% from April 1. For you, this represents an increase from $800 pcm to $824 pcm from your April bill.

As you know, we appreciate your business and have enjoyed working with you and achieved some great results. However, like any business, our own operating costs increase over time.

This modest increase is necessary to maintain the service level you are used to, so we wanted to inform you in good time. We are confident that our prices will remain competitive within our industry for the quality of service we provide and as always we are focused on the results we deliver to customers.

I would like to remind you of the service we offer you monthly, including:

Service 1 Service 2 Service 3

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

Yours faithfully,

[Business Name]

Price increase announcement tips

The fear of losing customers may cause some small business owners to reconsider their decision to raise the old price, even if the price increase allows them to offer better quality. However, a price increase doesn’t have to be painful for you, your team or your customers. Keep the following tips in mind when making your price increase announcement.

Include justification

Justification is one of the most important elements of a price increase letter. Customers want to know the reason for the higher costs, such as higher production and distribution costs, and that reasoning can help them accept the higher rates.

Be informative yet short

Keep your price increase message short and to the point. While you want to give customers all the relevant details, you want to do it in as concise a form as possible.

Provide FAQs

Customers may be looking for additional information that doesn’t fit on the same page as your brief price increase notice. You can add a link to a FAQ page on your website with additional information about any price increases. This can give customers details such as how to unsubscribe from a paid plan, as well as more details that amplify the value on offer.

Be Steadfast and Authoritative

It’s best to maintain a professional tone in your price increase letter and avoid language that is overly apologetic or over-explanatory. Most companies will have to raise prices at some point, and while empathy is appropriate, no apologies are necessary.

Limit price increases to once a year

Raising prices regularly is a good way to lose customer loyalty. When adjusting prices, try to predict what rate will keep you profitable for at least the following year so you can avoid additional raises.

What’s another way to say price increase?

Looking for a softer way to say “price increase”? Or maybe you should just avoid repetitive language in your price increase message. Anyway, there are other phrases you can use to communicate a price increase, including:

InflationPrice increase Rising costsPrice boostPrice increase

How do you implement a price increase?

If you need to raise your prices, it’s essential that you inform your customer base in advance to maintain their loyalty. This can be done in a variety of ways, ranging from a website announcement to a personal price increase letter or email. Some companies may just post at their location, but this less personal contact will have a more negative impact on customer relationships.


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