How To Write A Price Increase Letter? Sample & Template

How To Write A Price Increase Letter

In this guide, we’ll walk you through how to write a price increase letter that strikes the perfect balance between transparency and empathy. 

Raising prices is a natural part of running a business. But it can feel tricky to communicate a price increase to your customers. 

You want them to understand the reasons behind the increase without losing their trust or loyalty. The good news? A clear, empathetic, and professional price increase letter can help you do just that.

Whether you’re crafting a price increase letter to customers for the first time or refining your approach, we’ll provide a price increase letter template, practical tips, and real-world price increase letter examples to make your job easier.

Let’s dive into it!

Table of Contents

What Is A Price Increase Letter?

A price increase letter is a message companies send to their customers about future changes in their service pricing. It usually includes:

  • A list of the services that will be increased
  • A specific date about when these changes will be effective
  • The reason why those services are being increased (providers charge more, raw materials prices have increased, government has increased taxes, etc.)
  • Your company’s contact details

Why a Price Increase Letter Matters?

A price increase letter is more than just a notice. Done right, it can:

  • Preserve Relationships: A well-crafted letter shows your customers that you value and respect them. Taking the time to explain the “why” behind the price change demonstrates that you’re not raising costs arbitrarily. It’s about sustaining the quality and service they rely on.
  • Minimize Backlash: Price increases can catch people off guard. Being transparent about the reasons behind the adjustment helps reduce confusion and frustration.
  • Enhance Credibility: Open, honest communication builds trust. When customers understand the value you bring and the factors behind your decision, they’re more likely to view the increase as fair and justified. In fact, your transparency can reinforce their confidence in choosing your business.
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When to Send a Price Increase Letter?

Timing is everything. Customers value transparency and appreciate having time to adjust their budgets or make informed decisions, so choosing the right moment to notify them is key to maintaining trust and minimizing pushback.

Here are a few tips to get the timing just right:

  • Provide Ample Notice: Aim to give your customers at least 30–60 days’ notice before the new prices take effect. This window shows respect for their planning needs and gives them time to prepare for the change without feeling blindsided. For example, if you’re a service provider, this means your clients can adjust their monthly budgets or consider their options well in advance.
  • Consider Recurring Services: For ongoing commitments like subscriptions, memberships, or retainers, a longer lead time—such as 90 days—may be more appropriate. This is especially true for annual plans, where customers might feel locked in. Notifying them early demonstrates that you value their long-term commitment and are being upfront about any upcoming adjustments.
  • Choose the Right Moment: Timing your letter to align with key business or seasonal cycles can soften the impact. For instance, sending a notice after completing a major project or during a period of high customer satisfaction can make customers more receptive. 

Avoid delivering the news during holidays or other times when budgets might already be stretched.

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How To Write a Price Increase Letter?

Writing a price increase letter can feel delicate, but by following these steps, you can communicate the change professionally while maintaining customer trust and satisfaction:

1. Start With Gratitude

Begin your letter by thanking your customers for their loyalty and support. This sets a positive tone right away, reminding them of the relationship you’ve built together. For example, you could write:

“We’re incredibly grateful for your trust and continued support over the years.” This opening acknowledges their importance to your business and makes the message feel more personal.

2. Be Transparent About the Change

Don’t beat around the bush—state clearly that prices will increase and explain why. Customers value honesty, so if rising operational costs, enhanced services, or other factors are behind the adjustment, say so. For example:

“Due to rising material costs and our commitment to maintaining the highest quality, we’ll be implementing a price adjustment starting [date].” Transparency shows that the change is necessary, not arbitrary.

3. Highlight the Value You Provide

Take the opportunity to remind customers of the value your business delivers. Mention specific benefits they enjoy, improvements you’ve made, or anything new they can look forward to. For example:

“This adjustment allows us to continue offering the premium customer service and quality products you’ve come to expect from us.”

4. Provide Specific Details

Give customers the essential information they need:

  • The new price or rate.
  • When the change will take effect.
  • How it affects their current arrangement (e.g., subscriptions, services, or contracts).

“Starting [date], the price for [service/product] will increase from $X to $Y. This adjustment will apply to all orders placed after this date.”

5. Offer Support

Show that you care about their concerns by inviting them to reach out with questions. Provide a direct contact, such as an email address or phone number, to make the process more approachable.  For example:

“If you have any questions or need further clarification, please don’t hesitate to reach out to us at [contact information].”

6. End on a Positive Note

Close your letter with gratitude and optimism. Reiterate your appreciation for their support and your commitment to delivering exceptional service. For instance:

“We’re so thankful for your continued trust and look forward to serving you with the same dedication and care you deserve.” 

7. Provide Helpful Links

Ensure your customers can easily find the information or support they need by including direct links to relevant pages. Add links to the account home page, help center, contact page, or customer service department if applicable. Making these resources accessible demonstrates your commitment to their convenience and satisfaction.

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Price Increase Letter Template

Subject Line: Important Update: Pricing Changes

Dear [Customer’s Name],

Thank you for being a valued customer of [Your Company Name]. Your trust in us means everything.

Due to [reason, e.g., rising material costs], we’ll be adjusting our pricing. Starting [date], the cost of [product/service] will increase from [current price] to [new price].

This adjustment ensures we can continue delivering the quality and value you’ve come to expect from us.

If you have any questions, please don’t hesitate to reach out to us at [contact information].

We appreciate your understanding and look forward to continuing to serve you.

Sincerely,

[Your Name]

[Your Position]

Sample Letter To Announce a Price Increase on a Bill

Here’s a real-world price increase letter example:

Subject Line: Important Update to Your Service

Dear Alex,

Thank you for trusting Green Horizons Landscaping to care for your outdoor space. Over the past three years, it’s been a pleasure helping your garden thrive.

To continue providing the high-quality care you deserve, we’re making a pricing adjustment. Starting March 1st, the monthly cost for your landscaping service will increase from $150 to $175. This change reflects rising material and labor costs while ensuring we maintain our standards.

If you have any questions, feel free to reach out to us at hello@greenhorizons.com or (555) 123-4567. We appreciate your loyalty and look forward to continuing to help your garden flourish.

Warm regards,

James Carter

Owner, Green Horizons Landscaping

Tips for Sending Your Price Increase Letter

1. Choose the Best Way to Reach Your Customers

Consider how your customers usually interact with your business. Email is a great option for most, as it’s quick and easy to track. 

However, for long-term or high-value clients, a printed letter or even a personal phone call followed by a written confirmation can leave a more thoughtful impression. The goal is to ensure the message feels personal and professional.

2. Send the Letter Well in Advance

Give your customers plenty of notice—typically 30–60 days—before the price increase takes effect. 

For services like subscriptions or long-term contracts, providing even more time (such as 90 days) can help customers adjust their budgets and prevent any negative surprises. This proactive approach shows respect for their planning needs.

3. Follow Up With a Reminder

After your initial announcement, send a follow-up reminder about one to two weeks before the new pricing takes effect. This ensures the message hasn’t been overlooked and helps reinforce the update. It’s also a great time to reiterate your appreciation for their loyalty and remind them of the value they’ll continue to receive.

4. Provide Clear Contact Options for Questions

Make it easy for customers to reach out with concerns or questions. Include a dedicated email address, phone number, or link to your contact page. By responding promptly and empathetically to inquiries, you can reinforce trust and show that their satisfaction matters to your business.

5. Reassure Customers of the Value You Provide

Throughout your communication, focus on the benefits your customers continue to receive from your services or products. Remind them of the quality, reliability, and expertise your business delivers. This helps frame the price adjustment as a necessary step to maintain the high standards they’ve come to expect.

6. Personalize When Possible

Whenever you can, personalize your communication by addressing customers by name and referencing their history with your business. A little personalization can go a long way in making customers feel valued and understood, even during a price change. 

Keep Your Invoices Up to Date

Once you’ve sent your price increase letter, don’t forget to update your invoices to reflect your new pricing! It’s an important step to ensure your billing matches the changes you’ve communicated to your customers. 

Invoicing tools like our Invoice Maker and our Invoice Templates make this process seamless by letting you quickly update pricing, customize invoices, and maintain a polished, professional look. With these tools, you can ensure accuracy and save time while keeping your clients’ trust intact.

RELATED ARTICLE: How To Write An Invoice: Includes Invoice Template & Examples

Final Thoughts on How To Write A Price Increase Letter

No one loves writing a price increase letter, but it’s a necessary part of running and growing a business. 

The good news? When done thoughtfully, it’s not just a chance to inform your customers but also an opportunity to build trust and strengthen your relationship with them.

Give your customers warning at least 30–60 days if possible. Nobody likes being caught off guard. And offering plenty of notice shows you respect their time and budget. 

Personal touches go a long way too. Address your customers by name, mention your history together, and make it clear how much you value their support.

This isn’t just about raising prices. It’s about showing customers the value you bring and reminding them why they chose you in the first place. Highlight the quality, service, or expertise they’ll continue to receive. And don’t forget to thank them for being a part of your journey.

Need a simple way to update invoices and streamline your communication? 

Download Invoice Fly Today!

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Jennifer is a skilled senior copywriter with over 10 years of experience in content strategy, creative, and UX writing and other digital marketing disciplines.

Her work prioritizes clarity and conversion optimization (CRO). The approach is deeply rooted in branding, where she crafts compelling narratives and drives unique and meaningful engagement.

Born in Minnesota, North America, she has deep industry knowledge and experience creating content about banking, accounting, travel, food, SaaS products and mobile apps, as she has work for companies such as Ogilvy, Design, Juni and Qustodio, among many others.