How to Write a Price Increase Letter for Customers [Free Template]
When you’re ready to increase your prices, you need a plan to do it right. A price increase letter is a great way to communicate price changes with customers while maintaining transparency, professionalism, and trust.
Read on to learn how to write a price increase letter, additional ways to communicate price increases, and when it’s time to raise your prices.
Price increase letter template
Here are some price increase letters you can copy, paste, and edit to use for your own clients.
Generic price increase letter templates
Price increase letter sample #1
Subject: [Company Name] Price Increase Notice
Hi [Customer Name],
As you know, [Company Name] is committed to providing high-quality, professional [industry] services to our clients.
We’ve been growing a lot in the last year and in order to continue to offer you great services, we will be increasing our prices by [percentage] starting on [month, day, year]. This will ensure that we can continue to focus on the quality of our services by working with the best suppliers and materials to get the job done right, every time.
This means that as of [month, date, year], your invoice for [services] will increase from [current price] to [new price].
We appreciate your support and are happy to have you as a loyal customer! If you have any questions or concerns, please don’t hesitate to get in touch.
Sincerely,
[Company Name]
[Phone Number]
[Website]
[Email Address]
Price increase letter sample #2
Subject: Service Price Increase Notice
Hi [Customer Name],
This letter is to let you know that as of [month, day, year] we will be increasing our prices by [percentage] due to [material and supplier increases/demand/new service packages].
This means your invoice for [services] will increase from [old price] to [new price].
[Company Name] is committed to providing you with high-quality, timely, and professional [industry] services and this price increase will help us to maintain these values as we grow and move forward.
This price increase will not affect any jobs that are currently in progress or for quotes that are approved before [month, day, year].
If you have any questions or concerns, please reach out via [email address], [phone number], or [website].
Thank you for your understanding!
Sincerely,
[Company Name]
Price increase letter sample #3
Subject: Price Increase Announcement
Hi [Customer Name],
On [month, day, year], we’ll be increasing our prices by [percentage], which will help us keep up with rising business costs such as [materials/supplies/labor].
Currently, we provide you with the following services:
[Service 1]
[Service 2]
[Service 3]
Your invoice will increase from [current price] to [new price].
We’re dedicated to providing you with high-quality [industry] services and look forward to working with you in the future.
If you have any questions, we’re happy to help. Get in touch by calling us at [phone number], sending an email to [email address], or visiting our website: [URL].
Sincerely,
[Company Name]
Lawn care price increase letter template
Use this template to notify your lawn care customers of your upcoming price increase.
Subject: [Company Name] Price Increase Notice
Hi [Customer Name]
At [Company Name], we’re committed to providing high-quality, professional lawn care services to our clients.
In order to keep up with rising business costs and to continue providing you with the best possible services, we’ll be increasing our prices by [percentage] on [month, day, year].
This means that as of [month, date, year], your invoice for [services] will increase from [current price] to [amount after increase].
If you have any questions or concerns, please reach out via [email address], [phone number], or [website].
Thank you for your understanding!
Sincerely,
[Lawn care business name]
Cleaning service price increase letter sample
Copy and paste this letter template to let customers know you’re increasing your cleaning service prices.
Subject: [Company Name] Pricing Change Notice
Hi [Customer Name]
At [Company Name] we’re dedicated to providing you with high-quality cleaning services.
To help us keep up with the rising costs of cleaning supplies and labor, on [month, day, year], we’ll be increasing our prices by [percentage].
As of [month, date, year], your new [weekly/monthly] cleaning cost will be [new rate].
If you have any questions, we’re happy to help. Get in touch by calling us at [phone number], sending an email to [email address], or visiting our website: [URL].
Sincerely,
[Business name]
Tips for writing a price increase letter
Once you’ve determined that raising your prices is the right path for your business, you need to ensure that you communicate the change to your customers properly. Here are some best practices to keep in mind when writing your home service price increase email.
1. Tell your employees first
Before you tell clients about a price change, you need to make sure that you communicate it to your staff first. When all of your staff members are on the same page, it ensures consistency in quotes and invoices as well as customer service inquiries from clients.
Let office staff, employees, and contractors know about the upcoming pricing changes before notifying customers to avoid any issues down the road with inconsistent information.
2. Give your customers plenty of notice
If you have recurring clients on weekly, monthly, or seasonal contracts who will be affected by a price increase, notify them well in advance.
Providing plenty of notice helps clients feel respected and prepared (plus, you’ll avoid angry phone calls after surprise bills).
Pro tip: Try to give clients one to three months’ notice before raising prices.
3. Be clear and concise
Make sure your letter is direct and to the point. Clearly state what the new pricing will be and when it will take effect.
Then, offer an explanation for the increase and how they can reach out with questions or concerns. Burying your price increase in a lengthy email will only confuse or frustrate your customers.
4. Add a personal touch
To show you value their business, include personal details for each client, like their name, the services they purchase, and how long you’ve been providing those services.
READ MORE: Thank-you notes for customers: templates to show your appreciation
5. Explain the price increase
When explaining the cost increase to clients, having a reason helps them understand why they’ll need to start paying more.
No one wants to pay higher bills, so being transparent about your reasoning (inflation, cost of materials, labor) will help justify the increase for customers.
“Explaining why you are charging what you’re charging gives you a leg up. And it’s not bragging — you’re explaining your value,” says Tyler Rasmussen of The Pool Chasers Podcast.
READ MORE: What to do when customers say your price is too high
6. Offer support
Let customers reach out with questions or concerns about your price increase by including a couple of contact methods such as your phone number or email address.
7. Send a follow up reminder
Sometimes emails end up in spam folders, or are simply overlooked. Send a follow up email or text to make sure your customer received the price increase information before your new prices come into effect.
READ MORE: 5 payment reminder email templates to send to customers
Get more expert tips for telling customers about price increases (without losing them) in this video:
When to increase prices
Some service businesses raise their prices a small percentage every year to account for inflation. Others increase prices on customer anniversary dates, or when minimum wage goes up.
If you’re not sure when to increase your prices, here are a few signs that it’s time:
Your costs increase
Labor, materials, fuel, overhead, and most other business expenses will increase in price over time. This can be due to inflation, suppliers, the labor market, or other unexpected factors.
If you don’t adjust your prices to reflect these increases, you’ll be left paying for them out of pocket.
Keep an eye on your profit margins each month to monitor any increase trends so you can make adjustments to your pricing before they become a problem.
FREE TOOL: Use our profit margin calculator to set the right prices
You want to grow your business
Price increases can also be used as a pricing strategy to help you reach specific business goals, like hiring a certain number of new employees or expanding to a new service area.
If you’re looking to grow your business, raising prices may be the best way to fund your expansion.
You need to filter customers
When your prices are low, you’ll usually attract customers who value savings above quality or workmanship. These customers can actually cost you more than they’re worth.
If a customer leaves over a small rate increase, chances are you’d have lost them to a lowballing competitor anyway. Raising prices can help you filter out these customers so you can target clients who are interested in bigger or longer-term jobs.
You’re in demand
It’s normal to price low when you’re just starting your service business to attract early customers. But once you start booking jobs regularly, you’ll need to increase your prices to come up to market value.
Your competitors are charging more
Stay on top of industry trends by monitoring how your competitors are pricing their services. If your competitors are charging more for the same service, it’s time to increase your pricing to align with market standards.
READ MORE: 10 simple ways to increase revenue from existing customers
Raising your prices allows you to hire more skilled labor, pay yourself and your staff bigger salaries, and work on more exciting jobs with clients you enjoy.
Copy and paste one of the templates above to effectively communicate your price increase with existing customers and start earning more for your hard work today.
Originally published in March 2021. Last updated on June 7th 2023.